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Saturday, May 19 • 1:00pm - 2:30pm
G2a-Family Income in Early Life on Financial Independence of Young Adults: Evidence from a Matched Panel Data

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Xu Cui, Jing Jian Xiao, Yi Jingtao - Using a large nationally representative U.S. sample included in the 1999 to 2015 Panel Study of Income Dynamics, its 2009 to 2015 Transition to Adulthood Supplement, and its 1997 to 2007 Child Development Supplement, we find that the relationship between family income during adolescence and financial independence of young adults are showing an inverted U-shape. College graduation status plays an important role in determining the financial independence of young adults. Once young adults graduate from college, their financial independence significantly improves and is no longer influenced by their family income during adolescence. The results show similar patterns after controlling for cognitive abilities, non-cognitive abilities and other financial behaviors of young adults when they were children or teenagers.


Nilton Porto

Assistant Professor, University of Rhode Island

Saturday May 19, 2018 1:00pm - 2:30pm