Should I stay or should I go? Sibling effects in household formation

Aparicio-Fenoll, A. and Oppedisano, V. 2016. Should I stay or should I go? Sibling effects in household formation. Review of Economics of the Household. 14 (4), pp. 1007-1027. doi:10.1007/s11150-016-9325-1

TitleShould I stay or should I go? Sibling effects in household formation
AuthorsAparicio-Fenoll, A. and Oppedisano, V.
Abstract

This paper analyzes peer effects among siblings in the decision to leave parental home. Estimating peer effects is challenging because of problems of refection, endogenous group formation, and correlated unobservables. We overcome these issues using the exogenous variation in siblings' household formation implied by the eligibility rules for a Spanish rental subsidy. Our results show that sibling effects are negative and that these effects can be explained by the presence of old or ill parents. Sibling effects turn positive from older to younger close-in-age siblings, when imitation is more likely to prevail. Our findings indicate that policy makers who aim at fostering household formation should target the household rather than the individual and combine policies for young adults with policies for the elderly.

KeywordsPeer effects, Siblings, Household formation, Living arrangements
JournalReview of Economics of the Household
Journal citation14 (4), pp. 1007-1027
ISSN1569-5239
Year2016
PublisherSpringer
Accepted author manuscriptdraft_final_REHO_3.pdf
Digital Object Identifier (DOI)doi:10.1007/s11150-016-9325-1
Publication dates
Published21 Jan 2016

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