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The Economic Determinants of Young People's Household Formation

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  • Ermisch, John
  • Di Salvo, Pamela

Abstract

This paper derives predictions about the impact of the price of housing, young adults' income, and parental income on the probability that a young adult lives apart from his/her parents. It shows that the predicted effect of the price of housing is intimately related to the price elasticity of housing demand. It uses longitudinal data on a cohort of Britons born in 1958 (surveyed in the National Child Development Study) to estimate dynamic models of first departure from the parental home and particularly to estimate the impact of housing price on the timing and destination of first departure. Copyright 1997 by The London School of Economics and Political Science

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Bibliographic Info

Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 64 (1997)
Issue (Month): 256 (November)
Pages: 627-44

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Handle: RePEc:bla:econom:v:64:y:1997:i:256:p:627-44

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Citations

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Cited by:
  1. repec:ese:iserwp:2008-20 is not listed on IDEAS
  2. Smith, Mark W., 1999. "The impact of state welfare policies on women's cohabitation," MPRA Paper 19288, University Library of Munich, Germany.
  3. Maite Martínez & J. Ruiz Castillo, . "The decisions of Spanish youth: A cross-section study," Studies on the Spanish Economy 14, FEDEA.
  4. Nazio, Tiziana & Saraceno, Chiara, 2010. "The impact of cohabitation without marriage on intergenerational contacts: A test of the diffusion theory," Discussion Papers, Research Professorship Demographic Development, Social Change, and Social Capital SP I 2010-402, Social Science Research Center Berlin (WZB).
  5. Cobb-Clark, Deborah A., 2008. "Leaving Home: What Economics Has to Say about the Living Arrangements of Young Australians," IZA Discussion Papers 3309, Institute for the Study of Labor (IZA).
  6. Donald Haurin & Stuart Rosenthal, 2007. "The Influence of Household Formation on Homeownership Rates across Time and Race," Working Papers 07-01, Ohio State University, Department of Economics.
  7. David Blanc & François-Charles Wolff, 2006. "Leaving Home in Europe: The Role of Parents’ and Children’s Incomes," Review of Economics of the Household, Springer, vol. 4(1), pages 53-73, 03.
  8. Steven Garasky, 2000. "Understanding the Employment Experiences and Migration Patterns of Rural Youth and Young Adults," JCPR Working Papers 143, Northwestern University/University of Chicago Joint Center for Poverty Research.
  9. Carla Sá & Raymond Florax & Piet Rietveld, 2007. "Living-arrangement and university decisions of Dutch young adults," NIPE Working Papers 14/2007, NIPE - Universidade do Minho.
  10. Cheti Nicoletti & Marco Francesconi, 2006. "Intergenerational mobility and sample selection in short panels," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(8), pages 1265-1293.
  11. Cobb-Clark, Deborah A. & Gorgens, Tue, 2012. "Parents' Economic Support of Young-Adult Children: Do Socioeconomic Circumstances Matter?," IZA Discussion Papers 6376, Institute for the Study of Labor (IZA).
  12. Jellal, Mohamed, 2009. "A Theory of Educational Inequality Family and Agency Costs," MPRA Paper 17434, University Library of Munich, Germany.
  13. Richard V. Burkhauser & Timothy M. Smeeding, 2000. "Microdata Panel Data and Public Policy: National and Cross-National Perspectives," Center for Policy Research Working Papers 23, Center for Policy Research, Maxwell School, Syracuse University.
  14. Dietz, Robert D. & Haurin, Donald R., 2003. "The social and private micro-level consequences of homeownership," Journal of Urban Economics, Elsevier, vol. 54(3), pages 401-450, November.
  15. Zhu Xiao Di & Xiaodong Liu, 2006. "The Effects of Housing Push Factors and Rent Expectations on Household Formation of Young Adults," Journal of Real Estate Research, American Real Estate Society, vol. 28(2), pages 149-166.
  16. Anne Solaz & Francois-Charles Wolff, 2013. "Intergenerational correlation of domestic work: Does gender matter?," Working Papers halshs-00853391, HAL.
  17. Lee, Kwan Ok & Painter, Gary, 2013. "What happens to household formation in a recession?," Journal of Urban Economics, Elsevier, vol. 76(C), pages 93-109.
  18. Clara Mulder, 2013. "Family dynamics and housing," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 29(14), pages 355-378, September.

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