Inequality of Resources Among Young Adults: An individualised Approach

This paper proposes a new measure of the financial situation of young adults by constructing an “individualised” measure of young adults' standard of living, distinct from that of the parental household. To this end, we incorporate a monetary valuation of co-residence and a precise quantification of parental financial assistance using the 2014 Enquête nationale sur les ressources des jeunes (National Survey on the Resources of Young Adults). The proposed approach to living standards is shown to correlate better with perceived financial well‑being as reported by young adults compared to the standard approach. More than half of the individualised income of young adults is found to come from parental transfers, whether in monetary form or in kind through co-residence. Thus, a direct effect of social background on the standard of living remains in the individualised standards of living, as does an indirect effect through other determinants such as level of education and activity status. At a comparable individual standard of living, the perceived financial well-being of young adults is also found to depend on their future prospects, which are directly related to potential parental assistance and to the fact of having good relationships with parents.