Coming of Age: Employment Outcomes for Youth Who Age Out of Foster Care Through Their Middle Twenties

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Abstract

This study examines employment outcomes for youth who age out of foster care through their middle twenties in three states: California, Minnesota, and North Carolina. The study linked child welfare, Unemployment Insurance (UI), and public assistance administrative data to assess outcomes. Results suggest that youth who age out of foster care continue to experience poor employment outcomes at age 24 and generally follow one of four employment trajectories as they transition to adulthood.

Introduction

A youth’s departure from home marks the beginning of adulthood and a new stage in life. This critical juncture and the surrounding years, often referred to as the “transition to adulthood,” is increasingly being recognized as a distinct developmental stage between adolescence and adulthood (Arnett, 2004). Youth who reach this stage and are living in foster care are often at a significant disadvantage. In 2005, over 24,000 youths found themselves in this circumstance (DHHS, 2006). They “aged out” of the foster care system and entered into the world of adulthood relatively alone.

Research suggests these youth do not fare well. Youth who age out of foster care often have bouts of homelessness, criminal activity, and incarceration (Courtney, Piliavin, and Grogan- Kaylor, 1998; Courtney, Piliavin, Grogan-Kaylor, and Nesmith, 2001). Many suffer from physical and mental health challenges as a result of past abuse or neglect.

A primary task in transitioning to adulthood, and the focus of this report, is finding and sustaining employment. Studies of former foster youth who age out of foster care find that these youth generally experience high unemployment, unstable employment patterns, and earn very low incomes in the period between ages 18 and 21 (Cook, 1991; Courtney et al., 2001; Dworsky and Courtney, 2001; Goerge, Bilaver, Lee, Needell, Brookhart and Jackman, 2002). Studies also document consistently low rates of high school completion and welfare receipt (Courtney et al., 1998; Courtney et al., 2001; Festinger, 1983; McMillen and Tucker, 1999; Pecora, Kessler, Williams, O’Brien, Downs, English, et al., 2003).

What is less known about these youth is how they fare in their mid-twenties, after they have made the initial transition into adulthood. It might be hypothesized that some would experience unstable employment in their initial attempts to connect to the workforce, but that these patterns would stabilize when youth reached their mid-twenties. If these patterns do not stabilize, however, addressing job readiness and educational needs early in the transition to adulthood may be important to shaping the future trajectories of these youth.

The Department of Health and Human Services (DHHS) Office of the Assistant Secretary for Planning and Evaluation (ASPE) requested this study to examine employment and earnings outcomes for youth, through their mid-twenties, who age out of foster care. Key findings suggest:

• Low rates of employment persist through age 24: About three out of five youth who age out of foster care are working at age 24 in all three states, a rate lower than that of youth nationally and youth from low-income families.
• Low earnings persist through age 24: Average monthly earnings for youth who age out of foster care remain low at age 24 in all three states ($690 in California, $575 in Minnesota, and $450 in North Carolina). These earnings are substantially lower than earnings for youth nationally, who earn $1,535 a month.
• Four patterns of connectedness to the workforce emerge: Never connected youth have a consistently low probability of employment between ages 18 and 24. Consistently connected youth maintain a high probability of employment during this period and achieve earnings comparable to national averages. Initially connected youth have a high probability of employment around ages 18 and 19, but this probability declines sharply by age 22. Later connected youth have a slow start but steadily increase their probability of employment through age 24.

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The nonpartisan Urban Institute publishes studies, reports, and books on timely topics worthy of public consideration. The views expressed are those of the authors and should not be attributed to the Urban Institute, its trustees, or its funders.

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