Millennials staying with their parents

According to research referred to by the PBS Newshour yesterday, around 45% of women and 24% of young men still live with their parents a high increase from 20 years ago. There is considerable speculation as to why this shift has occurred. In addition to increasingly burdensome student loan debt and wage stagnation, which are almost certainly causes, increasing uncertainty must also play role. Twenty to thirty years ago, when expectations were based on the relative stability experienced by one's parents, a young person could expect to secure gainful and stable employment which would enable them to plan ahead for the reduction in the debt burden. However, with increased uncertainty in the labour market, and the widespread belief that stable employment is a thing of the past, it makes no sense to take on large commitments like marriage, children or a mortgage. The model used by Lippmann and Rumelt in 1982 for firm entry applies equally to entry into a life of independence from ones parents.