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The decisions of Spanish youth: A cross-section study

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  • Maite Martínez-Granado

    ()
    (Departamento de Economía, Universidad Carlos III de Madrid, C/. Madrid 126, 28903 Getafe, Madrid, Spain)

  • Javier Ruiz-Castillo

    ()
    (Departamento de Economía, Universidad Carlos III de Madrid, C/. Madrid 126, 28903 Getafe, Madrid, Spain)

Abstract

This paper presents a simultaneous model for the joint decisions of working, studying and leaving the parental household by young people in Spain. Using cross-section data from the 1990-1991 Encuesta de Presupuestos Familiares, the model is estimated by a two stage estimation method. Endogeneity of the three decisions proves to be important in order to understand the dynamics of household formation. Our results also confirm a number of plausible intuitions about the effect of individual characteristics and economic variables on these decisions, and provide some new insights into the reasons for young people in Spain remaining in large numbers in the parental home. Most of the results are gender independent.

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Bibliographic Info

Article provided by Springer in its journal Journal of Population Economics.

Volume (Year): 15 (2002)
Issue (Month): 2 ()
Pages: 305-330

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Handle: RePEc:spr:jopoec:v:15:y:2002:i:2:p:305-330

Note: Received: 18 September 1998/Accepted: 24 October 2000
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Keywords: Household formation · working and studying decisions · two stage estimation;

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  1. McElroy, Marjorie B, 1985. "The Joint Determination of Household Membership and Market Work: The Case of Young Men," Journal of Labor Economics, University of Chicago Press, vol. 3(3), pages 293-316, July.
  2. Olympia Bover & Manuel Arellano, 1997. "Estimating limited dependent variable models from panel data," Investigaciones Economicas, Fundación SEPI, vol. 21(2), pages 141-166, May.
  3. Haurin Donald R. & Hendershott Patric H. & Kim Dongwook, 1994. "Housing Decisions of American Youth," Journal of Urban Economics, Elsevier, vol. 35(1), pages 28-45, January.
  4. Borsch-Supan, Axel, 1986. "Household formation, housing prices, and public policy impacts," Journal of Public Economics, Elsevier, vol. 30(2), pages 145-164, July.
  5. Ermisch, John, 1997. "Prices, parents and young people's household formation," ISER Working Paper Series 97-18, Institute for Social and Economic Research.
  6. 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 284-93, May.
  7. Mallar, Charles D, 1977. "The Estimation of Simultaneous Probability Models," Econometrica, Econometric Society, vol. 45(7), pages 1717-22, October.
  8. 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 627-44, November.
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  1. La emancipación con recortes rápidos y reformas a medio gas
    by Florentino Felgueroso in Nada Es Gratis on 2012-07-26 23:56:04
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