Leaving Home and Housing Prices: The Experience of Italian Youth Emancipation

43 Pages Posted: 17 Nov 2011

See all articles by Francesca Modena

Francesca Modena

University of Trento - Department of Economics and Management; Euricse

Concetta Rondinelli

Bank of Italy

Date Written: September 23, 2011

Abstract

This paper provides an explanation for the postponement of youth emancipation in the Italian context mainly characterized by a sharp increase in both house and rent prices together with stagnant disposable income over the past decade. We first assemble a unique database related to the housing and rental market which is then matched with household characteristics. We find that the probability of leaving home decreases by about half percentage point and one percentage point for males and females, respectively, for a one-standard-deviation change in house prices. Together with property prices, local labor markets play a prominent role in determining decisions by unemployed youths to postpone the transition. The youngest cohort was mainly affected by the real estate market evolution that occurred in the last decade.

Keywords: coresidence, moving out, real estate market, discrete time duration model

JEL Classification: C41, D1, J12, R2

Suggested Citation

Modena, Francesca and Rondinelli, Concetta, Leaving Home and Housing Prices: The Experience of Italian Youth Emancipation (September 23, 2011). Bank of Italy Temi di Discussione (Working Paper) No. 818, Available at SSRN: https://ssrn.com/abstract=1960897 or http://dx.doi.org/10.2139/ssrn.1960897

Francesca Modena

University of Trento - Department of Economics and Management ( email )

Via Inama 5
Trento, I-38100
Italy

Euricse ( email )

Via S. Giovanni 36
38122 Trento (TN)
Italy

Concetta Rondinelli (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
112
Abstract Views
719
rank
302,361
PlumX Metrics