Young Adults Living with their Parents and the Influence of Peers |
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Authors: | Effrosyni Adamopoulou Ezgi Kaya |
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Institution: | 1. Directorate General for Economics, Statistics and Research, Structural Economic Analysis Directorate, Bank of Italy and IZA, Rome, Italy;2. Cardiff Business School, Cardiff University, Cardiff, UK |
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Abstract: | This study examines the impact of peer behaviour on the living arrangements of young adults in the US using data from the National Longitudinal Study of Adolescent Health. We achieve identification by exploiting the differences in the timing of leaving the parental home among peers, the individual‐specific nature of the peer groups that are based on friendship nominations, and by including network and cohort fixed effects. Our results indicate that there are statistically significant peer effects on young adults’ decisions to leave the parental home. We discuss various mechanisms and confirm the robustness of our results through a placebo exercise. |
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