Job Insecurity and Children's Emancipation

49 Pages Posted: 1 Apr 2004

See all articles by Sascha O. Becker

Sascha O. Becker

Monash University - Department of Economics; University of Warwick

Samuel Bentolila

Centro de Estudios Monetarios y Financieros (CEMFI); Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute)

Ana Fernandes

University of Bern - Department of Economics

Andrea Ichino

University of Bologna

Date Written: March 2004

Abstract

The age at which children leave the parental home differs considerably across countries. We present a theoretical model predicting that higher job security of parents and lower job security of children may delay emancipation. We then provide aggregate evidence which supports this hypothesis for 12 European countries. We also give microeconometric evidence for Italy, the single country for which we have access to household-specific information on job security and coresidence. It is a very interesting case to study since, in the late 1990s, approximately 75% of young Italians aged 18 to 35 were living at home and they had only a 4% probability of emancipation in the subsequent 3 years. We show that this probability would have increased by 4 to 10 percentage points if their fathers had gone from having a fully secure job to becoming unemployed for sure.

Keywords: emancipation, job security, option value

JEL Classification: J1, J2

Suggested Citation

Becker, Sascha O. and Bentolila, Samuel and Fernandes, Ana and Ichino, Andrea, Job Insecurity and Children's Emancipation (March 2004). IZA Discussion Paper No. 1046; CESifo Working Paper Series No. 1144. Available at SSRN: https://ssrn.com/abstract=521404

Sascha O. Becker

Monash University - Department of Economics ( email )

Wellington Road
Clayton, Victoria 3
Australia

University of Warwick ( email )

Gibbet Hill Rd.
Coventry, West Midlands CV4 8UW
United Kingdom

Samuel Bentolila

Centro de Estudios Monetarios y Financieros (CEMFI) ( email )

Casado del Alisal 5
28014 Madrid
Spain
+34 91 429 0551 (Phone)
+34 91 429 1056 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Ana Fernandes

University of Bern - Department of Economics ( email )

Schanzeneckstrasse 1
Bern, CH-3001
Switzerland

Andrea Ichino (Contact Author)

University of Bologna ( email )

Piazza Scaravilli 1
40126 Bologna, fc 47100
Italy
+39 349 5965919 (Phone)

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