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Leaving your mamma: why so late in Italy?

Enrica Di Stefano ()
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Enrica Di Stefano: Bank of Italy

No 1144, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: In Italy, young adults tend to postpone their transition to adulthood and live with their parents until very late compared with other countries. A dynamic discrete choice model is proposed in which agents choose residential arrangements, together with labor supply and marital status, conditional on the economic and institutional framework and on other agents' choices. The model is structurally estimated with the Simulated Method of Moments for non-student high-school graduate males and then used to assess, through a variety of counterfactual experiments, the relative importance of factors that are claimed to influence the choice to leave home in the existing literature: labor market conditions, parental resources, housing market conditions and social interaction. Results suggest that Italians choose to remain with their parents due to a combination of poor labor market conditions and high housing costs. The relatively high income of parents could contribute to the patterns observed by acting as an insurance against unemployment. Finally, estimates indicate that individuals tend to conform to a social norm that is influenced by external conditions.

Keywords: transition to adulthood; co-residence; structural estimation (search for similar items in EconPapers)
JEL-codes: D10 D31 H31 J11 J12 (search for similar items in EconPapers)
Date: 2017-10
New Economics Papers: this item is included in nep-lab and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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