Advanced Search
MyIDEAS: Login to save this paper or follow this series

Modelling state dependence and feedback effects between poverty, employment and parental home emancipation among European youth

Contents:

Author Info

  • Sara Ayllón Gatnau

Abstract

Youth is one of the phases in the life-cycle when some of the most decisive life transitions take place. Entering the labour market or leaving parental home are events with important consequences for the economic well-being of young adults. In this paper, the interrelationship between employment, residential emancipation and poverty dynamics is studied for eight European countries by means of an econometric model with feedback effects. Results show that youth poverty genuine state dependence is positive and highly significant. Evidence proves there is a strong causal effect between poverty and leaving home in Scandinavian countries, however, time in economic hardship does not last long. In Southern Europe, instead, youth tend to leave their parental home much later in order to avoid falling into a poverty state that is more persistent. Past poverty has negative consequences on the likelihood of employment.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.econ.upf.edu/docs/papers/downloads/1180.pdf
File Function: Whole Paper
Download Restriction: no

Bibliographic Info

Paper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 1180.

as in new window
Length:
Date of creation: Oct 2009
Date of revision:
Handle: RePEc:upf:upfgen:1180

Contact details of provider:
Web page: http://www.econ.upf.edu/

Related research

Keywords: youth poverty dynamics; trivariate multinomial probit; state dependence; feedback effects; unobserved heterogeneity;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Paul Contoyannis & Andrew M. Jones & Nigel Rice, 2004. "Simulation-based inference in dynamic panel probit models: An application to health," Empirical Economics, Springer, vol. 29(1), pages 49-77, January.
  2. John Hobcraft, 2003. "Continuity and Change in Pathways to Young Adult Disadvantage: Results from a British Birth Cohort," CASE Papers case66, Centre for Analysis of Social Exclusion, LSE.
  3. Thomas A. Mroz & Timothy H. Savage, 2006. "The Long-Term Effects of Youth Unemployment," Journal of Human Resources, University of Wisconsin Press, vol. 41(2).
  4. Wooldridge, Jeffrey M., 2000. "A framework for estimating dynamic, unobserved effects panel data models with possible feedback to future explanatory variables," Economics Letters, Elsevier, vol. 68(3), pages 245-250, September.
  5. Stewart, Mark, 2006. "The Inter-related Dynamics of Unemployment and Low-Wage Employment," The Warwick Economics Research Paper Series (TWERPS) 741, University of Warwick, Department of Economics.
  6. Arulampalam, Wiji & Booth, Alison L & Taylor, Mark P, 2000. "Unemployment Persistence," Oxford Economic Papers, Oxford University Press, vol. 52(1), pages 24-50, January.
  7. Chamberlain, Gary, 1984. "Panel data," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 22, pages 1247-1318 Elsevier.
  8. Parisi, Lavinia, 2008. "Leaving home and the chances of being poor: the case of young people in Southern European countries," ISER Working Paper Series 2008-12, Institute for Social and Economic Research.
  9. Maite Martínez & J. Ruiz Castillo, . "The decisions of Spanish youth: A cross-section study," Studies on the Spanish Economy 14, FEDEA.
  10. Dean R. Hyslop, 1999. "State Dependence, Serial Correlation and Heterogeneity in Intertemporal Labor Force Participation of Married Women," Econometrica, Econometric Society, vol. 67(6), pages 1255-1294, November.
  11. Biewen, Martin, 2004. "Measuring State Dependence in Individual Poverty Status: Are There Feedback Effects to Employment Decisions and Household Composition?," IZA Discussion Papers 1138, Institute for the Study of Labor (IZA).
  12. Weber, Andrea, 2002. "State Dependence and Wage Dynamics: A Heterogeneous Markov Chain Model for Wage Mobility in Austria," Economics Series 114, Institute for Advanced Studies.
  13. Arulampalam, W., 1998. "A Note on Estimated Coefficients in Random Effects Probit Models," The Warwick Economics Research Paper Series (TWERPS) 520, University of Warwick, Department of Economics.
  14. Aassve, Arnstein & Davia, Maria A. & Iacovou, Maria & Mencarini, Letizia, 2005. "Poverty and the transition to adulthood: risky situations and risky events," ISER Working Paper Series 2005-23, Institute for Social and Economic Research.
  15. Aassve, Arnstein & Davia, Maria A. & Iacovou, Maria, 2005. "Does leaving home make you poor? Evidence from 13 European countries," ISER Working Paper Series 2005-24, Institute for Social and Economic Research.
  16. Rob Alessie & Agar Brugiavini & Guglielmo Weber, 2005. "Saving and Cohabitation: The Economic Consequences of Living with One's Parents in Italy and the Netherlands," NBER Working Papers 11079, National Bureau of Economic Research, Inc.
  17. Francesco Devicienti & Ambra Poggi, 2011. "Poverty and social exclusion: two sides of the same coin or dynamically interrelated processes?," Applied Economics, Taylor & Francis Journals, vol. 43(25), pages 3549-3571.
  18. Lorenzo Cappellari & Stephen P. Jemkins, 2002. "Who Stays Poor? Who Becomes Poor? Evidence from the British Household Panel Survey," Economic Journal, Royal Economic Society, vol. 112(478), pages C60-C67, March.
  19. Jäntti, Markus & Bratsberg,Bernt & Røed, Knut & Raaum, Oddbjørn & Naylor, Robin & Österbacka, Eva & Björklund, Anders & Eriksson, Tor, 2007. "American exceptionalism in a new light : a comparison of intergenerational earnings mobility in the Nordic countries, the United Kingdom and the United States," The Warwick Economics Research Paper Series (TWERPS) 781, University of Warwick, Department of Economics.
  20. Cappellari, Lorenzo & Jenkins, Stephen P., 2002. "Modelling low income transitions," ISER Working Paper Series 2002-08, Institute for Social and Economic Research.
  21. Arnstein Aassve & Maria Iacovou & Letizia Mencarini, 2006. "Youth poverty and transition to adulthood in Europe," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 15(2), pages 21-50, July.
  22. Mendola, Daria & Busetta, Annalisa & Aassve, Arnstein, 2008. "Poverty permanence among European youth," ISER Working Paper Series 2008-04, Institute for Social and Economic Research.
  23. James J. Heckman, 1981. "Heterogeneity and State Dependence," NBER Chapters, in: Studies in Labor Markets, pages 91-140 National Bureau of Economic Research, Inc.
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 in new window

Cited by:
  1. Pfeiffer, Friedhelm & Seiberlich, Ruben R., 2009. "A socio-economic analysis of youth disconnectedness," ZEW Discussion Papers 09-070, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  2. Carlos Gradín & Olga Cantó, 2009. "Why are child poverty rates so persistently high in Spain?," Working Papers 123, ECINEQ, Society for the Study of Economic Inequality.

Lists

This item is featured on the following reading lists or Wikipedia pages:
  1. SOEP based publications

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:upf:upfgen:1180. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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