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Economy

After Job Loss, Living Near Parents Helps Adults Recover

According to a new study, it can take decades for someone who was laid off to make up lost earnings, but for those who live near parents who provide childcare, that time is halved.
A woman holds her granddaughter at the Care Harbor clinic in Los Angeles, California, October 2015.
A woman holds her granddaughter at the Care Harbor clinic in Los Angeles, California, October 2015.Lucy Nicholson/Reuters
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Young adults take a huge hit if they get laid off. Even 20 years on, their earnings may not fully recover. But those who live near their parents tend to bounce back more quickly—within 10 years, they can make up what they lost in earnings.

A new analysis by the Cleveland Federal Reserve finds that this isn’t just a correlation: Having parents nearby is why some adults rebound faster. That’s mainly because parents provide a crucial type of support: childcare.