Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/150781
Authors: 
Ayllón, Sara
Year of Publication: 
2009
Series/Report no.: 
SOEPpapers on Multidisciplinary Panel Data Research No. 235
Abstract: 
Youth is one of the phases in the life-cycle when some of the most decisive life transitions take place. Entering the labour market or leaving parental home are events with important consequences for the economic well-being of young adults. In this paper, the interrelationship between employment, residential emancipation and poverty dynamics is studied for eight European countries by means of an econometric model with feedback effects. Results show that youth poverty genuine state dependence is positive and highly significant. Evidence proves there is a strong causal effect between poverty and leaving home in Scandinavian countries, however, time in economic hardship does not last long. In Southern Europe, instead, youth tend to leave their parental home much later in order to avoid falling into a poverty state that is more persistent. Past poverty has negative consequences on the likelihood of employment.
Subjects: 
Youth poverty dynamics
trivariate multinomial probit
state dependence
feedback effects
unobserved heterogeneity
JEL: 
I32
J13
C33
Document Type: 
Working Paper

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