Children and household utility

Coe, Norma B., and Anthony Webb. “Children and household utility”. CRR WP 2010-16, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, November 2010. http://hdl.handle.net/2345/bc-ir:104860.
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Abstract

Using consumption and wealth data from the Health and Retirement Study (HRS), this paper explores the impact of children leaving home on household consumption. We find that households maintain their household-level consumption, despite the fact that the number of individuals in the household has decreased, increasing per-capita consumption. Further, we find no evidence of increases in total net wealth, or any of its components, after children leave the household. These findings suggest that households do not dramatically change their savings or consumption patterns when their children fly the coop. Those households who are already behind in their retirement preparations will remain at risk of entering retirement with insufficient wealth to maintain their pre-retirement standard of living.

Title
Children and household utility: Evidence from kids flying the coop
Author
Coe, Norma B.
Webb, Anthony
Center
Center for Retirement Research
Genre
working paper
Date Issued
November 2010
Publisher
Center for Retirement Research at Boston College
Series Title
CRR WP
Series Number
2010-16
Persistent Link
http://hdl.handle.net/2345/bc-ir:104860
Use Restrictions
These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject
Financing retirement

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