American Teens are Hitting the Road Less
American teens are increasingly delaying getting their driver's licenses, with the share of teenagers aged 16-19 with licenses declining from 64% in 1995 to around 40% in 2021. Several factors contribute to this trend, including the rising costs of owning a car, inflation impacting insurance and gas prices, the availability of ride-hailing and delivery apps reducing the necessity of owning a car, urban centers becoming less car-friendly, and teens preferring alternative modes of transportation to reduce their environmental impact.
Graduated licensing laws, which require novice drivers to gain skills in low-risk settings before obtaining full driving privileges, have also impacted the decline. The decreasing trend in driving extends to Generation Z and millennials, with fewer young people obtaining licenses. These changes reflect a divide between those with access to resources and those with limited means, as obtaining a license can be expensive, especially for teens from lower-income families.
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