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Job Insecurity And Children'S Emancipation

  • Sascha O. Becker

    ()

  • Samuel Bentolila

    ()

  • Ana Fernandes

    ()

  • Andrea Ichino

    ()

    (CEMFI, Centro de Estudios Monetarios y Financieros)

The age at which children leave the parental home differs considerably across countries. We present a theoretical model predicting that higher job security of parents and lower job security of children may delay emancipation. We then provide aggregate evidence wich supports this hypothesis for 12 European countries. We also give microeconometric evidence for Italy, the single country for which we have access to household-specific information on job security and coresidence. It is a very interesting case to study since, in the late 1990s, approximately 75% of young Italians aged 18 to 35 were living at home and they had only a 4% probability of emancipation in the subsequent 3 years. We show that this probability would have increased by 4 to 10 percentage points if their fathers had gone from having a fully secured job to becoming unemployed for sure.

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Paper provided by CEMFI in its series Working Papers with number wp2004_04.

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Date of creation: Mar 2004
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Handle: RePEc:cmf:wpaper:wp2004_04
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  1. Sascha O. Becker & Samuel Bentolila & Ana Fernandes & Andrea Ichino, 2004. "Job Insecurity and Children's Emancipation," CESifo Working Paper Series 1144, CESifo Group Munich.
  2. Ermisch, John, 1999. "Prices, Parents, and Young People's Household Formation," Journal of Urban Economics, Elsevier, vol. 45(1), pages 47-71, January.
  3. Maite Martínez & J. Ruiz Castillo, . "The decisions of Spanish youth: A cross-section study," Studies on the Spanish Economy 14, FEDEA.
  4. Ghidoni, Michele, 2002. "Determinants of young Europeans' decision to leave the parental household," Royal Economic Society Annual Conference 2002 85, Royal Economic Society.
  5. G. C. Giannelli & C. Monfardini, 2000. "Joint Decisions on Household Membership and Human Capital Accumulation of Youths: The role of expected carnings and labour market rationing," Working Papers 375, Dipartimento Scienze Economiche, Universita' di Bologna.
  6. Böckerman, Petri, 2002. "Perception of job instability in Europe," MPRA Paper 4701, University Library of Munich, Germany.
  7. Green, Francis & Felstead, Alan & Burchell, Brendan, 2000. " Job Insecurity and the Difficulty of Regaining Employment: An Empirical Study of Unemployment Expectations," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 62(0), pages 855-83, Special I.
  8. Rosenzweig, Mark R & Wolpin, Kenneth I, 1993. "Intergenerational Support and the Life-Cycle Incomes of Young Men and Their Parents: Human Capital Investments, Coresidence, and Intergenerational Financial Transfers," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages 84-112, January.
  9. Marco Manacorda & Enrico Moretti, 2006. "Why do Most Italian Youths Live with Their Parents? Intergenerational Transfers and Household Structure," Journal of the European Economic Association, MIT Press, vol. 4(4), pages 800-829, 06.
  10. Guiso, Luigi & Jappelli, Tullio & Pistaferri, Luigi, 2002. "An Empirical Analysis of Earnings and Employment Risk," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(2), pages 241-53, April.
  11. McElroy, Marjorie B, 1985. "The Joint Determination of Household Membership and Market Work: The Case of Young Men," Journal of Labor Economics, University of Chicago Press, vol. 3(3), pages 293-316, July.
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