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The parental home as labor market insurance for young Greeks during the Great Recession

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  • Rebekka CHRISTOPOULOU

    (Department of Economics, University of Macedonia)

  • Maria PANTALIDOU

    (Department of Economics, University of Macedonia)

Abstract

Labor market conditions in Greece have severely deteriorated during the crisis, affecting youths the most. Using the Greek crisis as a case-study, this paper examines the role of the family as a social safety net for its young members. Specifically, we test the relationship between youth labor outcomes and parental co-residence, whether this relationship has become stronger during the crisis, and the degree to which the relationship is causal. Our results confirm that the parental home is a refuge both for jobless youth and for those in poorly paid, insecure jobs, and this role has intensified during the crisis. We find no reverse causality between co-residence and employment status for young men, and significant reverse causality for women. This finding implies that all youths live in the parental home when they are in need themselves, but it is young women not men who live with parents when parents are in need or for cultural reasons.

Suggested Citation

  • Rebekka CHRISTOPOULOU & Maria PANTALIDOU, 2022. "The parental home as labor market insurance for young Greeks during the Great Recession," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 88(3), pages 313-350, September.
    • Handle: RePEc:ctl:louvde:v:88:y:2022:i:3:p:313-350
    DOI: 10.1017/dem.2020.23
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    More about this item

    Keywords

    Great Recession; Greece; Living arrangements; Parental coresidence; Youth employment;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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