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Journal of Population Economics

, Volume 16, Issue 2, pp 265–285 | Cite as

Joint decisions on household membership and human capital accumulation of youths. The role of expected earnings and local markets

  • Gianna Claudia Giannelli
  • Chiara Monfardini

Abstract.

This paper analyses the effects of expected earnings and local markets conditions on the behaviour of young adults with high school diplomas. Decisions to either remain in the parental home or form a new household are modelled jointly with those of either gaining work experience or investing in a university education. Expected lifetime earnings are found to play a crucial role in determining the choice of studying and residing with parents. Poor labour market opportunities discourage young people from working and induce them to study. The cost of housing greatly influences the choice of working and leaving the parental home.

JEL classification: C25 J12 J24 
Key words: Living arrangements expected lifetime earnings multinomial probit 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2003

Authors and Affiliations

  • Gianna Claudia Giannelli
    • 1
  • Chiara Monfardini
    • 2
  1. 1.Dipartimento Studi sullo Stato, Università di Firenze, Via S. Caterina d`Alessandria 3, 50129 Firenze, Italy (Fax: +39-055-472102; e-mail: giannelli@studistato.unifi.it)IT
  2. 2.Dipartimento di Scienze Economiche, Università di Bologna, Piazza Scaravilli 2, 40126 Bologna, Italy (Fax: +39-051-221968; e-mail: chiaram@economia.unibo.it)IT

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