Young adults’ labor market transitions and intergenerational support in Germany

Anna Manzoni , North Carolina State University
Michael Gebel, University of Bamberg

We investigate whether and how young adults’ labor market transitions induce changes in intergenerational transfers. We draw on German Family Panel (pairfam) data from birth cohorts 1981-83 and 1991-93 and use a first difference panel estimator with asymmetric effects to examine the extent to which young adults’ employment transitions affect material, emotional, instrumental, and residential support, from parents. We explore differences across types of support and investigate heterogeneity in effects by gender and socioeconomic background. Preliminary findings point to stark differences: parental material support changes in response to transitions in and out of employment, more strongly for sons and for youth from higher socioeconomic background. Other types of support seem less contingent on labor market transitions. Instrumental support only increases when transitioning from education to work and when moving from employment to inactivity. Residential support decreases with transitions to employment and emotional support is mostly unaffected by labor market transitions. We also explore differences across types of contract; preliminary findings do not show evidence of differences.

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 Presented in Session 7. Intergenerational relations and inequality