Determinants of young Europeans' decision to leave the parental household

Michele Ghidoni
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Michele Ghidoni: University College London

No 85, Royal Economic Society Annual Conference 2002 from Royal Economic Society

Abstract: I estimated a dynamic model of departure of young people from the parental home using ECHP, BHPS, GSOEP and found that the large differences in household structure across Europe can partly be explained by income and labour market characteristics: for Southern males economic circumstances are important: current income and employment status affect departure, while potential earnings do not, and higher family income discourages departures more than in the North. Southernersí low departure rates seem to be the result of limited labour market opportunities. A model with multiple destinations is shown to be significantly better than a dichotomous one.

Date: 2002-08-29
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