How problematic are youth problems in the long run? : A longitudinal study of incomes and economic hardship among Swedish youth

• The questions addressed in this study are: first, what factors determine the economic situation among the young and, second, what factors in youth have a long-term impact on people's economic situations? The empirical analysis utilizes a three wave panel that covers a period of 16 years. A growth curve model is used in order to estimate changes over time and the following main results are found: Young people’s incomes do not say very much about their current standard of living or future earning ability. If anything, low income is a predictor of substantial future income growth. There are good reasons to be sceptical regarding the importance of analysing young people's income situation and the incidence of income poverty among the young. Being economically deprived during youth is unrelated to the development of deprivation over time. Hence, the finding that young people in general face economic difficulties does not imply that we are observing a problem with lasting implications. Labour market situation and household characteristics during youth are only modestly related to the development later on in life. However, long-term unemployment hampers young people's economy also in the long run. Most importantly, the results of this analysis emphasize the importance of the reproduction of class and gender relations. It is these two fundamental aspects that more than anything else affect young people, on their way into adulthood and in their future life as adults.

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