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Leaving Home Ain't Easy. A comparative longitudinal analysis of ECHP data

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Author Info
Arnstein Aassve (Max Planck Institute for Demographic Research, Rostock, Germany)
Francesco C. Billari (Max Planck Institute for Demographic Research, Rostock, Germany)
Stefano Mazzuco
Fausta Ongaro

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Abstract

We use three waves of the European Community Household Panel (ECHP) to analyse the impact of employment, earnings, household income, and welfare on young adults’ decision to leave the parental home. In particular we investigate the importance of these income sources in different welfare settings. We use a simultaneous equation approach to control for unobserved heterogeneity. This is important given that the ECHP does not include retrospective information on demographic events. We find employment and income to be very important factors in the decisions of young adults in the Southern European Welfare State to leave home. For the Continental European Welfare state the results are more mixed. Employment and income are still important factors, but the effects are less clear and there are significant variations. In the Scandinavian Social Democratic Welfare State, the effect of employment and income appears negligible. The effect is also modest in the UK (the Liberal Market State), a finding we attribute to the educational system.

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Paper provided by Max Planck Institute for Demographic Research, Rostock, Germany in its series MPIDR Working Papers with number WP-2001-038.

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Length: 33 pages
Date of creation: Dec 2001
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Handle: RePEc:dem:wpaper:wp-2001-038

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Web page: http://www.demogr.mpg.de/

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Find related papers by JEL classification:
J1 - Labor and Demographic Economics - - Demographic Economics
Z0 - Other Special Topics - - General

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  1. Arnstein Aassve & Simon Burgess & Andrew Chesher & Carol Propper, 2002. "Transitions from home to marriage of young Americans," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 17(1), pages 1-23. [Downloadable!]
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  2. Ermisch, John, 1999. "Prices, Parents, and Young People's Household Formation," Journal of Urban Economics, Elsevier, vol. 45(1), pages 47-71, January. [Downloadable!] (restricted)
  3. Gianpiero Dalla Zuanna, 2001. "The banquet of Aeolus," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 4(5), pages 133-162, May. [Downloadable!]
  4. 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. [Downloadable!] (restricted)
  5. Van de Ven, Wynand P. M. M. & Van Praag, Bernard M. S., 1981. "The demand for deductibles in private health insurance : A probit model with sample selection," Journal of Econometrics, Elsevier, vol. 17(2), pages 229-252, November. [Downloadable!] (restricted)
  6. Arnstein Aassve & Francesco C. Billari & Fausta Ongaro, 2001. "The Impact of Income and Employment Status on Leaving Home: Evidence from the Italian ECHP Sample," LABOUR, CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd, vol. 15(3), pages 501-529, 09. [Downloadable!] (restricted)
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  1. Elisabetta Santarelli & Francesco Cottone, 2009. "Leaving home, family support and intergenerational ties in Italy: Some regional differences," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 21(1), pages 1-22, July. [Downloadable!]
  2. Thalberg, Sara, 2003. "Demographic Patterns in Europe. A review of Austria, Germany, The Netherlands, Estonia, Latvia, and Lithuania," Arbetsrapport 2003:8, Institute for Futures Studies. [Downloadable!]
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