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The Impact of Income and Employment Status on Leaving Home: Evidence from the Italian ECHP Sample
Author(s) -
Aassve Arnstein,
Billari Francesco C.,
Ongaro Fausta
Publication year - 2001
Publication title -
labour
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.403
H-Index - 34
eISSN - 1467-9914
pISSN - 1121-7081
DOI - 10.1111/1467-9914.00175
Subject(s) - censoring (clinical trials) , probit , sample (material) , demographic economics , probit model , ordered probit , economics , european community , panel survey , estimation , econometrics , chemistry , management , chromatography , international trade
In this paper we investigate the role economic resources play in the decision of young Italian adults to leave the parental home. This is of particular interest given that, in Italy, young people leave home considerably later than in other European countries. We use the first two waves of the Italian sample of the European Community Household Panel. We use a Heckman selection‐type probit procedure to account for left censoring and unobserved heterogeneity. We find that economic circumstances are important. In particular, we find personal income resources, as well as parental income levels, to be crucial in leaving home. Our results suggest that stable employment is an important prerequisite for men to start their own household. For women, on the other hand, finding a partner seems to the most important factor in becoming independent of their parents.