TY - JOUR AU - Card, David AU - Lemieux, Thomas TI - Adapting to Circumstances: The Evolution of Work, School, and Living Arrangements Among North American Youth JF - National Bureau of Economic Research Working Paper Series VL - No. 6142 PY - 1997 Y2 - August 1997 DO - 10.3386/w6142 UR - http://www.nber.org/papers/w6142 L1 - http://www.nber.org/papers/w6142.pdf N1 - Author contact info: David Card Department of Economics 549 Evans Hall, #3880 University of California, Berkeley Berkeley, CA 94720-3880 Tel: 510/642-5222 Fax: 510/643-7042 E-Mail: card@econ.berkeley.edu Thomas Lemieux Vancouver School of Economics University of British Columbia 6000 Iona Drive Vancouver, BC V6T 1L4 CANADA E-Mail: thomas.lemieux@ubc.ca M1 - published as David Card, Thomas Lemieux. "Adapting to Circumstances (The Evolution of Work, School,and Living Arrangements among North American Youth)," in David G. Blanchflower and Richard B. Freeman, editors, "Youth Employment and Joblessness in Advanced Countries" University of Chicago Press (2000) AB - We use comparable micro data sets for the U.S. and Canada to study the responses of young workers to the external labor market forces that have affected the two countries over the past 25 years. We find that young workers adjust to changes in labor market opportunities through a variety of mechanisms, including changes in living arrangements, changes in school enrollment, and changes in work effort. In particular, we find that poor labor market conditions in Canada explain why the fraction of youth living with their parents has increased in Canada relative to the U.S. recently. Paradoxically, this move back home also explains why the relative position of Canadian youth in the distribution of family income did not deteriorate as fast as in the U.S. ER -