Millennials are not all worse off than their baby boomer counterparts, a new study from the University of Cambridge found after analyzing major differences in the life trajectories and wealth accumulation of the generations in the U.S. However, a stark and growing wealth gap exists between the two groups.
Millennials are more likely to work in low-paying jobs and live with their parents, researchers found. But "those living more 'typical' middle-class lifestyles often have more wealth than their boomer parents did at the same age," the study, published in theAmerican Journal of Sociology in September 2023, reported.
Lead author of the study, Dr. Rob Gruijters said the debate about whether millennials are worse off is a distraction. "The crucial intergenerational shift has been in how different family and career patterns are rewarded."
Here’s what else researchers discovered.
Key findings: Millennials vs. baby boomers
- By age 35, 17% of baby boomers moved into a prestigious professional careers after graduating college, such as law or medicine, while 7.3% of millennials did the same.
- Millennials tended to postpone marriage and live with their parents for longer amounts of time. About 27% of boomers got married earlier and became parents early, compared to 13% of millennials.
- By age 35, 62% of boomers owned homes, while 49% of millennials were homeowners. Around 14% of millennials had negative net worth, compared to 8.7% of baby boomers.
- About 63% of low-skilled service workers who identified as boomers owned their own home at 35, compared with 42% of millennials in the same occupations.
- The poorest millennials in service sector roles were more likely to have negative net worth, compared to boomers.
"This divergence in financial rewards is exacerbating extreme levels of wealth inequality in the United States," Gruijters said. "Individuals with typical working class careers, like truck drivers or hairdressers, used to be able to buy a home and build a modest level of assets, but this is more difficult for the younger generation.”
Gruijters said the solutions to addressing these wealth inequalities include progressive wealth taxation and policies like universal health insurance, giving more people security.
Baby boomers have the largest net worth
Baby boomers own 52.8% of all wealth in the U.S., compared to 5.7% of millennials, according to the Federal Reserve.
How was the data collected?
Researchers from the University of Cambridge, Humboldt University in Germany and the French research university Sciences Po analyzed work and family life trajectories of more than 6,000 baby boomers and 6,000 millennials in the U.S.
Researchers posed the following questions:
- How does the distribution of household wealth at age 35 differ between millennials and babyboomers?
- How do early work and family trajectories differ between millennials and baby boomers?
- How do the wealth returns to different work and family trajectories vary between millennialsand baby boomers?
- To what extent can cohort differences in household wealth be attributed to changes in work andfamily life courses?
The study compared late baby boomers (born 1957-64) with early millennials (born 1980-84), using data from the National Longitudinal Survey of Youth.
What years are baby boomers?Here's how old this generation is in 2023
They can't buy into that American Dream:How younger workers are redefining success
FAQs
When looking at baby boomers—currently aged 59 to 78—the researchers found economic outcomes a bit more mixed. While it's true the average millennial has 30% less wealth at age 35 than boomers at the same age, the richest 10% of millennials have 20% more wealth than the richest boomers did.
Are millenials worse off than boomers? ›
Millennials are not all worse off than their baby boomer counterparts, a new study from the University of Cambridge found after analyzing major differences in the life trajectories and wealth accumulation of the generations in the U.S. However, a stark and growing wealth gap exists between the two groups.
Who is the first generation to be worse off than their parents? ›
One of the more downbeat economic themes in recent years has been the calculation that millennials would be the first generation to be worse off than their parents. But recent research casts some doubt on that theory.
Why are millennials aging slower? ›
Some have hypothesized that the slow aging of a generation is thanks to the rising popularity of "tweakments" like filler and botox, or the fact that they have a better understanding of the importance of SPF for anti ageing, while others cite the well-analyzed idea that millennials have a sheer inability to "grow up."
Did boomers really have it easier? ›
Collectively, baby boomers benefited a great deal from America's economic growth over the second half of the 20th century. The economy boomed in their childhoods as the U.S. became a superpower, and as adults, they had an easier time buying low-cost housing than their children or grandchildren would.
Who are the unhealthiest generation? ›
The report found that millennials had substantially higher diagnoses for eight of the top 10 health conditions than Generation X, and based on their current health status, millennials are more likely to be less healthy when they're older, compared to Gen Xers.
Which generation is struggling the most? ›
Not just growing pains: Gen Z reports suffering more than other generations did at their age. A new study from Gallup shows a crushing youth mental health crisis, because teens are more tuned in than ever.
Which generation quits the most? ›
Gen Z workers also report the highest rates of wanting to quit their jobs within the last three months compared to all other generations. In addition to feeling the least engaged in work, Gen Z also finds their responsibilities uninspiring.
Which generation has the most depression? ›
Depression is most common among Gen Z (56%) and millennials (59%), with only 36% of baby boomers reporting experiencing clinical depression in the last 12 months. Millennials are the most likely to seek mental healthcare, with 40% seeking help in the past year, compared to 28% of Gen Z and 21% of baby boomers.
Which generation has the most divorce? ›
Different generations, different choices
You have the self-proclaimed, "Greatest Generation," "Silent Generation," and "Baby Boomers." The Baby Boom generation refers to those born between 1946 and 1964. Boomers have the highest divorce rate in recorded U.S. history.
In general, millennials expect a lower quality of life in several regards, ranging from spending power and net worth to relationships and self-perception. They're more vulnerable to just about everything, including health problems and substance abuse.
Why do 30 year olds look younger now? ›
The toil on our body has diminished. Similarly, the average age for having a baby has been going up and families have been getting smaller. The causes of our stress have been shifting toward the psychological and away from the physical. Our bodies thus look younger.
Which generation is aging the fastest? ›
Generation Z, often shortened to Gen Z, is the term generally applied to those born between 1997 and 2012. Recent viral theories suggest this generation may be aging faster than others, particularly in the way they look.
Who is the richest generation in history? ›
Millennials stand to become the richest generation in history, after $90 trillion wealth transfer | CNN Business.
How do millennials differ from Baby Boomers? ›
For instance, millennials are more likely to live in metropolitan regions and apartments while baby boomers often choose single-family homes. In addition, millennials (42% vs. 25%) are far more likely than baby boomers to share a room.
Are millennials the hardest working generation? ›
Despite stereotypes endorsed by older generations, millennials are one of the hardest working generations. Over a quarter of them work 2 or more jobs. The number of weekly working hours is also astonishing for this generation, with 73% working more than 40 hours per week, and almost 25% working more than 50 hours.
Why are so many millennials struggling? ›
But on many fronts, Millennials are struggling. Incarceration rates among Millennial young adults are dramatically higher than they were when members of the Silent Generation and Baby Boom were the same age. The federal minimum wage hasn't risen since 2009, but inflation and cost of living have.
