IDEAS home Printed from https://ideas.repec.org/a/eee/jhouse/v41y2018icp106-123.html
   My bibliography  Save this article

Household formation over time: Evidence from two cohorts of young adults

Author

Listed:
  • Cooper, Daniel
  • Luengo-Prado, María José

Abstract

This paper examines how various demographic and economic factors impact household formation both within and across cohorts. The results show substantial differences in the share of young adults living with their parents over time. Differences in demographics, housing costs, and business-cycle conditions can explain as much as 70 percent of the difference in household-formation rates across cohorts, a result driven in large part by increased sensitivity of young adults’ household-formation decisions to economic conditions. Changes in parenting styles and shifting social norms likely also play roles.

Suggested Citation

  • Cooper, Daniel & Luengo-Prado, María José, 2018. "Household formation over time: Evidence from two cohorts of young adults," Journal of Housing Economics, Elsevier, vol. 41(C), pages 106-123.
    • Handle: RePEc:eee:jhouse:v:41:y:2018:i:c:p:106-123
    DOI: 10.1016/j.jhe.2018.06.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1051137717303108
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jhe.2018.06.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Greg Kaplan & Sam Schulhofer-Wohl, 2012. "Interstate Migration Has Fallen Less Than You Think: Consequences of Hot Deck Imputation in the Current Population Survey," Demography, Springer;Population Association of America (PAA), vol. 49(3), pages 1061-1074, August.
    2. Paola Giuliano, 2007. "Living Arrangements in Western Europe: Does Cultural Origin Matter?," Journal of the European Economic Association, MIT Press, vol. 5(5), pages 927-952, September.
    3. Henry S. Farber, 2007. "Is the Company Man an Anachronism? Trends in Long Term Employment in the U.S., 1973-20061," Working Papers 1039, Princeton University, Department of Economics, Industrial Relations Section..
    4. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    5. Jordan D. Matsudaira, 2016. "Economic conditions and the living arrangements of young adults: 1960 to 2011," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(1), pages 167-195, January.
    6. Marianne Bitler & Hilary Hoynes, 2015. "Living Arrangements, Doubling Up, and the Great Recession: Was This Time Different?," American Economic Review, American Economic Association, vol. 105(5), pages 166-170, May.
    7. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    8. Jordan Matsudaira, 2016. "Economic conditions and the living arrangements of young adults: 1960 to 2011," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(1), pages 167-195, January.
    9. Lisa Dettling, 2016. "Effects of entering adulthood during a recession," IZA World of Labor, Institute of Labor Economics (IZA), pages 242-242, April.
    10. Henry S. Farber, 2007. "Is the Company Man an Anachronism? Trends in Long Term Employment in the U.S., 1973-2006," Working Papers 1039, Princeton University, Department of Economics, Industrial Relations Section..
    11. Andrew Paciorek, 2016. "The Long and the Short of Household Formation," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 44(1), pages 7-40, February.
    12. Haurin, Donald R & Hendershott, Patric H & Kim, Dongwook, 1993. "The Impact of Real Rents and Wages on Household Formation," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 284-293, May.
    13. Dettling, Lisa J. & Hsu, Joanne W., 2018. "Returning to the nest: Debt and parental co-residence among young adults," Labour Economics, Elsevier, vol. 54(C), pages 225-236.
    14. Jordan Rappaport, 2015. "Millennials, baby boomers, and rebounding multifamily home construction," Economic Review, Federal Reserve Bank of Kansas City, issue Q II, pages 37-55.
    15. Ermisch, John & Di Salvo, Pamela, 1997. "The Economic Determinants of Young People's Household Formation," Economica, London School of Economics and Political Science, vol. 64(256), pages 627-644, November.
    16. Zachary Bleemer & Meta Brown & Donghoon Lee & Wilbert Van der Klaauw, 2014. "Tuition, jobs, or housing: what's keeping millennials at home?," Staff Reports 700, Federal Reserve Bank of New York.
    17. Ermisch, John, 1999. "Prices, Parents, and Young People's Household Formation," Journal of Urban Economics, Elsevier, vol. 45(1), pages 47-71, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Karen Dynan, 2020. "Rising student loan burdens and what to do about them," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 55(3), pages 129-133, July.
    2. Daniel Cooper & Olga Gorbachev & María José Luengo‐Prado, 2023. "Consumption, Credit, and the Missing Young," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 55(2-3), pages 379-405, March.
    3. Hippolyte d'Albis & Karina Doorley & Elena Stancanelli, 2021. "Older mothers' employment and marriage stability when the nest is empty," PSE Working Papers halshs-03203063, HAL.
    4. Chan, Sewin & O'Regan, Katherine & You, Wei, 2021. "Migration choices of the boomerang generation: Does returning home dampen labor market adjustment?," Journal of Housing Economics, Elsevier, vol. 53(C).
    5. Cristina Barceló & Ernesto Villanueva, 2018. "The risk of job loss, household formation and housing demand: evidence from differences in severance payments," Working Papers 1849, Banco de España.
    6. Karen Dynan, 0. "Rising student loan burdens and what to do about them," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 0, pages 1-5.
    7. Whelan, Stephen & Atalay, Kadir & Barrett, Garry & Cigdem, Melek & Edwards, Rebecca, 2023. "Transitions into home ownership: a quantitative assessment," SocArXiv 34xjf, Center for Open Science.
    8. Dirección General de Economía y Estadística, 2020. "El mercado de la vivienda en España entre 2014 y 2019," Occasional Papers 2013, Banco de España.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christopoulou, Rebekka & Pantalidou, Maria, 2022. "The parental home as labor market insurance for young Greeks during the Great Recession," Journal of Demographic Economics, Cambridge University Press, vol. 88(3), pages 313-350, September.
    2. Rebekka Christopoulou & Maria Pantalidou, 2017. "The parental home as labor market insurance for young Greeks during the crisis," Discussion Paper Series 2017_10, Department of Economics, University of Macedonia, revised Oct 2017.
    3. Rebekka Christopoulou & Maria Pantalidou, 2018. "Who saved Greek youth? Parental support to young adults during the great recession," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 129, Hellenic Observatory, LSE.
    4. Hippolyte d'Albis & Karina Doorley & Elena Stancanelli, 2021. "Older mothers' employment and marriage stability when the nest is empty," PSE Working Papers halshs-03203063, HAL.
    5. Adamopoulou, Effrosyni, 2016. "Living Arrangements of the Youth: Determinants and Gender Differences/Patrones de convivencia de los jóvenes: Determinantes y diferencias por sexos," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 34, pages 35-44, Enero.
    6. Effrosyni Adamopoulou & Ezgi Kaya, 2018. "Young Adults Living with their Parents and the Influence of Peers," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 80(3), pages 689-713, June.
    7. Albanesi, Stefania & Gihleb, Rania & Zhang, Ning, 2022. "Boomerang College Kids: Unemployment, Job Mismatch and Coresidence," IZA Discussion Papers 15507, Institute of Labor Economics (IZA).
    8. Newman, Sandra & Holupka, Scott & Ross, Stephen L., 2018. "There's no place like home: Racial disparities in household formation in the 2000s," Journal of Housing Economics, Elsevier, vol. 40(C), pages 142-156.
    9. Chan, Sewin & O'Regan, Katherine & You, Wei, 2021. "Migration choices of the boomerang generation: Does returning home dampen labor market adjustment?," Journal of Housing Economics, Elsevier, vol. 53(C).
    10. Pinka Chatterji & Xiangshi Liu & Barış K. Yörük, 2022. "Health insurance and the boomerang generation: Did the 2010 ACA dependent care provision affect geographic mobility and living arrangements among young adults?," Contemporary Economic Policy, Western Economic Association International, vol. 40(2), pages 243-262, April.
    11. Li, Lixing & Wu, Xiaoyu, 2019. "Housing price and intergenerational co-residence in urban China," Journal of Housing Economics, Elsevier, vol. 45(C), pages 1-1.
    12. Gihleb, Rania & Giuntella, Osea & Lonsky, Jakub, 2023. "Dreaming of leaving the nest? Immigration status and the living arrangements of DACAmented," European Economic Review, Elsevier, vol. 156(C).
    13. Dettling, Lisa J. & Hsu, Joanne W., 2018. "Returning to the nest: Debt and parental co-residence among young adults," Labour Economics, Elsevier, vol. 54(C), pages 225-236.
    14. Francesca Modena & Concetta Rondinelli, 2011. "Leaving home and housing prices. The experience of Italian youth emancipation," Department of Economics Working Papers 1101, Department of Economics, University of Trento, Italia.
    15. Donald R. Haurin & Stuart S. Rosenthal, 2007. "The Influence of Household Formation on Homeownership Rates Across Time and Race," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 35(4), pages 411-450, December.
    16. Andrew, Mark & Haurin, Donald & Munasib, Abdul, 2006. "Explaining the route to owner-occupation: A transatlantic comparison," Journal of Housing Economics, Elsevier, vol. 15(3), pages 189-216, September.
    17. Yi-Hsuan Lin & Chien-Wen Peng, 2019. "Married Young Adults Living with Parents -- An Analysis of Regional Differences," International Real Estate Review, Global Social Science Institute, vol. 22(3), pages 431-462.
    18. Adriana M. Reyes, 2022. "Race and Ethnic Differences in Financial Dependency of Coresident Young Adults During Economic Recessions and Over Time," Journal of Family and Economic Issues, Springer, vol. 43(1), pages 51-65, March.
    19. 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.
    20. Enrica Di Stefano, 2019. "Leaving your mamma: why so late in Italy?," Review of Economics of the Household, Springer, vol. 17(1), pages 323-347, March.

    More about this item

    Keywords

    Household formation; Housing costs;

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • D10 - Microeconomics - - Household Behavior - - - General
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jhouse:v:41:y:2018:i:c:p:106-123. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622881 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.