Journal of Population Economics

, Volume 15, Issue 2, pp 305–330 | Cite as

The decisions of Spanish youth: A cross-section study

  • Maite Martínez-Granado
  • Javier Ruiz-Castillo

Abstract.

This paper presents a simultaneous model for the joint decisions of working, studying and leaving the parental household by young people in Spain. Using cross-section data from the 1990–1991 Encuesta de Presupuestos Familiares, the model is estimated by a two stage estimation method. Endogeneity of the three decisions proves to be important in order to understand the dynamics of household formation. Our results also confirm a number of plausible intuitions about the effect of individual characteristics and economic variables on these decisions, and provide some new insights into the reasons for young people in Spain remaining in large numbers in the parental home. Most of the results are gender independent.

JEL classification: J12 J21 
Key words: Household formation working and studying decisions two stage estimation 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2002

Authors and Affiliations

  • Maite Martínez-Granado
    • 1
  • Javier Ruiz-Castillo
    • 1
  1. 1.Departamento de Economía, Universidad Carlos III de Madrid, C/. Madrid 126, 28903 Getafe, Madrid, Spain (Fax: +34-1-624-9875; e-mail: mmartine@eco.uc3m.es; jrc@eco.uc3m.es)ES

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