Carla Sá () (Universidade do Minho - NIPE) Raymond Florax (Purdue University and Vrije Universiteit Amsterdam) Piet Rietveld (Vrije Universiteit Amsterdam and Tinbergen Institute)
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This paper analyses the nature of university and living-arrangement decisions at the example of Dutch students with a secondary education academic diploma. A random utility maximization nested logit model of living-arrangement and university decisions is estimated, allowing for distance and rent e¤ects to vary according to the decision on whether to stay at parental home. Estimation results show that distance deters both at-homers and out-homers. Dutch youngsters are guided by consumption motives, rather than investment motives. They appear to attend university where their high school mates do. Tight housing markets lower the probability of choosing a given university. Male and low income students stay longer with parents, as do those with non-Dutch parents.
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Paper provided by NIPE - Universidade do Minho in its series NIPE Working Papers with number
14/2007.
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