CAMBRIDGE, Mass.–Has the current recession had enough of a lasting impression that it is turning younger Americans into savers? A new report by the National Bureau of Economic Research has found as much.
Using data on recessions between 1963 and 2006, the NBER found that young people who experienced a recession feel little control over their careers and attribute success more to luck than to personal worth or action. The study found they are even more skeptical if they have lost a job or witnessed their parents or a relative lose a job. Unemployment among 16 to 19-year-olds is currently at 26%.
The result is that many Americans, especially younger Americans, have been saving increasing amounts of income. Through mid year, American households had saved 6.9% of after-tax personal income, up sharply from a household savings rate of 1% in the three prior years.
