Living on Borrowed Security : Economic Consequences of Rising Financial Dependency of Educated Youth on Parents in India

Abstract

Despite rising educational attainment, a growing share of educated youth in India remain financially dependent on their parents well into adulthood. Using evidence from the Periodic Labour Force Survey (PLFS) 2023-24 and other official sources, this paper examines the economic consequences of this dependency in India. It argues that prolonged dependency reflects labour market fragility rather than individual failure, with important implications for household savings, youth labour behaviour, intergenerational inequality, and aggregate demand. The paper highlights the limits of family-based adjustment mechanisms and the need for policy responses focused on job quality and income security.