Rich children later to leave the nest

YOUNG adults from disadvantaged backgrounds are much more likely to have moved out of home by age 20 than their more privileged peers and to be disengaged from education and employment, a major study shows.

More than one-third of 20-year-olds from families with a long history of welfare dependence live independently of their parents. In contrast, three in four 20-year-olds from advantaged backgrounds are still living at home.

The report, by the Melbourne Institute of Applied Economic and Social Research, shows family support – in terms of housing and financial help – can play a crucial role in influencing whether young adults remain in studies or find a job.

At age 20, almost two-thirds of disadvantaged young people receive no financial help from their parents while more than half of their peers from advantaged families get support.

”Unfortunately, not all young people will have access to the parental support they want or need,” said Deborah Cobb-Clark, the director of the institute and co-author of the study. ”Some families lack the necessary resources while others may simply be unwilling to continue to support their children after they reach adulthood.”

The study, with Tue Gorgens of the Australian National University, was based on official records of all young people born between October 1987 and March 1988 whose families had some contact with the social security system over 14 years of their childhood.

Interviews were held with about 4000 of the young people at age 18 and 2400 at age 20.

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