Moving in with your parents after a job loss may pay off in a big way.
A University of Pennsylvania economist analyzed data from some 1,500 men, born from 1980 to '84, who were surveyed annually from 1997 into their 20s. The survey-takers asked the men, who had never attended college, detailed questions about their living arrangements. By age 26, men who had lost a job at 20 had earnings roughly 25% lower than those who hadn't been fired. But losses were concentrated almost entirely among people who had not moved back in with their parents; the others showed no significant earnings drop. Men living with their parents could be much pickier about job offers, the data showed, and were therefore less likely to get stuck in jobs with few opportunities for advancement and salary growth.
"Moving Back Home: Insurance Against Labor Market Risk," Greg Kaplan, Journal of Political Economy (June)