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Should I stay or should I go? Sibling effects in household formation

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  • Ainhoa Aparicio-Fenoll

    (Collegio Carlo Alberto, IZA, and CHILD)

  • Veruska Oppedisano

    (University of Westminster, IZA and IFS)

Abstract

This paper analyzes peer effects among siblings in the decision to leave parental home. Estimating peer effects is challenging because of problems of reflection, endogenous group formation, and correlated unobservables. We overcome these issues using the exogenous variation in siblings’ household formation implied by the eligibility rules for a Spanish rental subsidy. Our results show that sibling effects are negative and that these effects can be explained by the presence of old or ill parents. Sibling effects turn positive for close-in-age siblings, when imitation is more likely to prevail. Our findings indicate that policy makers who aim at fostering household formation should target the household rather than the individual and combine policies for young adults with policies for the elderly.

Suggested Citation

  • Ainhoa Aparicio-Fenoll & Veruska Oppedisano, 2016. "Should I stay or should I go? Sibling effects in household formation," Review of Economics of the Household, Springer, vol. 14(4), pages 1007-1027, December.
    • Handle: RePEc:kap:reveho:v:14:y:2016:i:4:d:10.1007_s11150-016-9325-1
    DOI: 10.1007/s11150-016-9325-1
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    Cited by:

    1. Enrica Di Stefano, 2017. "Leaving your mamma: why so late in Italy?," Temi di discussione (Economic working papers) 1144, Bank of Italy, Economic Research and International Relations Area.

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    More about this item

    Keywords

    Peer effects; Siblings; Household formation; Living arrangements;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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