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Journal of Population Economics

, Volume 14, Issue 2, pp 329–349 | Cite as

Group living decisions as youths transition to adulthood

  • Steven Garasky
  • R. Jean Haurin
  • Donald R. Haurin

Abstract.

This study follows teens through young adulthood as they transition to independent living. We focus on a little studied issue: why some youths live in groups rather than alone or with parents. This choice is important because the size of the group has a substantial impact on the demand for dwelling units; the more youths per dwelling the lower is aggregate demand and the greater is population density. Our study also adds to the knowledge of which factors influence youths' choice of destination as they leave the parental home. The empirical testing uses a discrete hazard model within a multinomial logit framework to allow for more than one possible state transition. We find that economic variables have little impact on the decision of whether to exit to a large versus a small group, while socio-demographic variables matter. We also test a new push-pull hypothesis and find that the pull of economic variables on the probability of exiting the parental home increases as youths reach their mid to late twenties.

JEL classification: D1 J12 R20 
Key words: Group living household formation home-leaving 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2001

Authors and Affiliations

  • Steven Garasky
    • 1
  • R. Jean Haurin
    • 2
  • Donald R. Haurin
    • 3
  1. 1.Department of Human Development and Family Studies, Iowa State University, 1086 LeBaron St., Ames, Iowa, USA 50011 (Fax: +1-515-294-2502; e-mail: sgarasky@iastate.edu)US
  2. 2.Center for Human Resource Research, The Ohio State University, 921 Chatham Lane, Suite 200, Columbus, OH, USA 43221 (Fax: +1-614-442-7329; e-mail: haurin.1@osu.edu)US
  3. 3.Departments of Economics, Finance, and Public Policy, The Ohio State University, 1010 Derby Hall, 154 N. Oval Mall, Columbus, OH, USA 43210 (Fax: +1-614-292-9530; e-mail: haurin.2@osu.edu)US

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