Trends in economic independence in the United States: 1973-2007

Maria Sironi, University of Pennsylvania
Frank Furstenberg, University of Pennsylvania

One of the milestones of adulthood is achieving economic independence. Without an adequate source of income, young people have difficulty leaving their childhood home, forming a relationship, or having children—or they do so at great peril. Using the National Longitudinal Surveys, this paper compares the labor market experiences of young adults aged 22–30 in 1973, 1987 and 2007, and their possible determinants. The results show that achieving economic independence is more difficult now than it was in the late 1980s and especially in the 1970s for both men and women, and even for older age groups (age 27-28). Moreover, from 1970s there has been a convergence in the determinants of the achievement of economic self-sufficiency between men and women, suggesting that the increase in gender parity, especially in education and labor market outcomes, is making their opportunities to be employed and to earn good wages more similar.