@techreport{Giannelli2000Joint,
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. A multinomial probit model estimates the probabilities of
the different pairs of outcomes. Expected lifetime earnings of youths are modelled and
estimated, and serve as choice-specific regressors in the probit model. According to our results,
the most important factor influencing the choice of studying and residing with parents is
expected lifetime earnings from a university degree. A sizeable discouraged worker effect
induces young people to study when labour market opportunities are poor. The cost of housing
greatly influences the choice of working and living in the parental home. Two policy experiments
offer some suggestions for policy makers. The first one measures the extent to which housing
policies, targeted at reducing housing costs, would allow youths to live away from the parental
home. A second indicates how much labour market policies, targeted at lowering youth
unemployment to some desired levels, could decrease the number of discouraged workers that
choose to study.},
author = {Gianna Claudia Giannelli and Chiara Monfardini},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {C25; J12; J24; J31; 330; Human capital; living arrangements; local labour markets; multinomial probit; Jugendliche; Bildungs\"{o}konomik; Wohnungswechsel; Bildungsertrag; Lebenseinkommen; Erwartungstheorie; Lehrstellenmarkt; Regionale Arbeitslosigkeit; Sch\"{a}tzung; Italien},
language = {eng},
number = {191},
title = {Joint Decisions on Household Membership and Human Capital Accumulation of Youths - The role of expected earnings and local markets},
type = {IZA Discussion paper series},
url = {http://hdl.handle.net/10419/21034},
year = {2000}
}
