Young adults living with their parents and the influence of peers

Effrosyni Adamopoulou and Ezgi Kaya

No 1038, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: This paper focuses on young adults in the US living with their parents and studies the role of peers. Using data from the National Longitudinal Study of Adolescent Health we analyse the influence of high school friends on the nest-leaving decision of young adults. We achieve identification by exploiting the differences in the timing of leaving the parental home among peers, the individual-specific nature of the peer groups, and by including school and grade fixed effects. Our results indicate that there are statistically significant peer effects on the decision of young adults to leave parental home. This is true even after we control for labour and housing market conditions and for a comprehensive list of individual and family-of-origin characteristics that are not usually observed by the econometrician. We discuss various mechanisms and we confirm the robustness of our results through a placebo exercise. Our findings correspond with the increasing trend of young adults living with their parents that has been observed in the US during the last 50 years.

Keywords: peer effects; friends; living arrangements; leaving parental home (search for similar items in EconPapers)
JEL-codes: D10 J12 J60 Z13 (search for similar items in EconPapers)
Date: 2015-11
New Economics Papers: this item is included in nep-dem, nep-lab, nep-soc and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Young Adults Living with their Parents and the Influence of Peers (2018)
Working Paper: Young Adults Living with Their Parents and the Influence of Peers (2016)
Working Paper: Young Adults Living with their Parents and the Influence of Peers (2015)
Working Paper: Young adults living with their parents and the influence of peers (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:bdi:wptemi:td_1038_15

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