Living with mom and dad and loving it…or Are you?

We investigate how living at the parental home affects the subjective well-being of young adults using a large representative panel dataset from the Household, Income and Labour Dynamics in Australia (HILDA) Survey from 2001 to 2013. We find that adults who live with their parents past adolescence are more likely to be less satisfied with their life after controlling for individual fixed effects, a large set of household and personal characteristics, and important life events ranging from recent unemployment to death of a spouse. This negative association increases with age, but at a decreasing rate. It peaks between the ages of 35-45 and then slowly dissipates. Results are robust to caliber Propensity Score Matching (PSM) analysis.