ABSTRACT
T he economic position of the typical young family deteriorated during the 1980s. This is because the factors that adversely affect working families (real wage erosion, the need to work longer hours) affected young workers and families the most. The boom in capital income, which was the most positive result of the 1980s, was of little help to young families since they generally have little savings. Because young families depend almost entirely on labor earnings for their income, they were affected quite significantly by the fall in real wages during the 1980s. Moreover, the shifts in employment toward low-wage industries, the effects of the large trade deficits, and the erosion of union membership have all affected young workers more than older workers. This is because young workers were more likely to be laid off from or unable to find jobs in the better paying industries that were shrinking in the 1980s.
