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Job Insecurity and Children’s Emancipation

Author

Listed:
  • Becker, Sascha O.

    (Monash University)

  • Bentolila, Samuel

    (CEMFI, Madrid)

  • Fernandes, Ana

    (University of Bern)

  • Ichino, Andrea

    (European University Institute)

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.

Suggested Citation

  • Becker, Sascha O. & Bentolila, Samuel & Fernandes, Ana & Ichino, Andrea, 2004. "Job Insecurity and Children’s Emancipation," IZA Discussion Papers 1046, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp1046
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    References listed on IDEAS

    as
    1. Maite Martínez-Granado & Javier Ruiz-Castillo, 2002. "The decisions of Spanish youth: A cross-section study," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(2), pages 305-330.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    option value; job security; emancipation;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

    NEP fields

    This paper has been announced in the following NEP Reports:

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