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Living-arrangement and university decisions of Dutch young adults

Author

Listed:
  • Carla Sá

    (Universidade do Minho - NIPE)

  • Raymond Florax

    (Purdue University and Vrije Universiteit Amsterdam)

  • Piet Rietveld

    (Vrije Universiteit Amsterdam and Tinbergen Institute)

Abstract

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.

Suggested Citation

  • Carla Sá & Raymond Florax & Piet Rietveld, 2007. "Living-arrangement and university decisions of Dutch young adults," NIPE Working Papers 14/2007, NIPE - Universidade do Minho.
  • Handle: RePEc:nip:nipewp:14/2007
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    File URL: http://www3.eeg.uminho.pt/economia/nipe/docs/2007/NIPE_WP_14_2007.PDF
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    References listed on IDEAS

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    6. 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.
    7. 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.
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    Citations

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    Cited by:

    1. Fernando Alexandre & Miguel Portela & Carla Sá, 2008. "Admission conditions and graduates' employability," NIPE Working Papers 16/2008, NIPE - Universidade do Minho.
    2. G. Cimini & M. Medo & T. Zhou & D. Wei & Y.-C. Zhang, 2011. "Heterogeneity, quality, and reputation in an adaptive recommendation model," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 80(2), pages 201-208, March.

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    More about this item

    Keywords

    living arrangements; university choice; random utility maximization; nested logit;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • I2 - Health, Education, and Welfare - - Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General

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