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This paper describes the links between Young European Adults’ earnings and the generosity of social transfers, such as family allowance and unemployment benefits. The links are described separately for three age groups and controlled for a number of individual factors, such as gender and educational attainment, as well as national factors, such as per capita GDP and the unemployment rate. We use multilevel models that account for the nesting of lower level statistical units, which are young adults in this case, within groups, which are households and countries here. This is why we use models with three levels. The findings show that family allowance and unemployment benefits do have an impact on young adults’ earnings. The impact is statistically significant, but limited.