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Living-arrangement and university decisions of Dutch young adults

  • Carla Sá

    ()

    (Universidade do Minho - NIPE)

  • Raymond Florax

    (Purdue University and Vrije Universiteit Amsterdam)

  • Piet Rietveld

    (Vrije Universiteit Amsterdam and Tinbergen Institute)

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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File URL: http://www3.eeg.uminho.pt/economia/nipe/docs/2007/NIPE_WP_14_2007.PDF
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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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Date of creation: 2007
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Handle: RePEc:nip:nipewp:14/2007
Contact details of provider: Postal: Núcleo de Investigação em Políticas Económicas, Escola de Economia e Gestão, Universidade do Minho, P-4710-057 Braga, Portugal
Phone: +351-253604510 ext 5532
Fax: +351-253601380
Web page: http://www3.eeg.uminho.pt/economia/nipe/versao_inglesa/index_uk.htm
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  1. Maite Martínez-Granado & Javier Ruiz-Castillo, 2002. "The decisions of Spanish youth: A cross-section study," Journal of Population Economics, Springer, vol. 15(2), pages 305-330.
  2. Christopher Avery & Caroline Minter Hoxby, 2004. "Do and Should Financial Aid Packages Affect Students' College Choices?," NBER Chapters, in: College Choices: The Economics of Where to Go, When to Go, and How to Pay For It, pages 239-302 National Bureau of Economic Research, Inc.
  3. Moore, Robert L. & Studenmund, A. H. & Slobko, Thomas, 1991. "The effect of the financial aid package on the choice of a selective college," Economics of Education Review, Elsevier, vol. 10(4), pages 311-321, December.
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  5. Ermisch, John & Di Salvo, Pamela, 1997. "The Economic Determinants of Young People's Household Formation," Economica, London School of Economics and Political Science, vol. 64(256), pages 627-44, November.
  6. Carla Sa & Raymond Florax & Piet Rietveld, 2004. "Determinants of the Regional Demand for Higher Education in The Netherlands: A Gravity Model Approach," Regional Studies, Taylor & Francis Journals, vol. 38(4), pages 375-392.
  7. William A. Brock & Steven N. Durlauf, 2003. "Multinomial Choice with Social Interactions," NBER Technical Working Papers 0288, National Bureau of Economic Research, Inc.
  8. Clara H Mulder & William A V Clark, 2002. "Leaving home for college and gaining independence," Environment and Planning A, Pion Ltd, London, vol. 34(6), pages 981-999, June.
  9. Alejandro Gaviria & Steven Raphael, 2001. "School-Based Peer Effects And Juvenile Behavior," The Review of Economics and Statistics, MIT Press, vol. 83(2), pages 257-268, May.
  10. Koppelman, Frank S. & Wen, Chieh-Hua, 1998. "Alternative nested logit models: structure, properties and estimation," Transportation Research Part B: Methodological, Elsevier, vol. 32(5), pages 289-298, June.
  11. Charles F. Manski, 1996. "Identification of Anonymous Endogenous Interactions," Working Papers 96-04-019, Santa Fe Institute.
  12. Behrman, Jere R & Rosenzweig, Mark R & Taubman, Paul, 1996. "College Choice and Wages: Estimates Using Data on Female Twins," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 672-85, November.
  13. A Stewart Fotheringham & Tomoki Nakaya & Keiji Yano & Stan Openshaw & Yoshitaka Ishikawa, 2001. "Hierarchical destination choice and spatial interaction modelling: a simulation experiment," Environment and Planning A, Pion Ltd, London, vol. 33(5), pages 901-920, May.
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