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Young Adults Living with their Parents and the Influence of Peers

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  • Effrosyni Adamopoulou
  • Ezgi Kaya

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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  • Effrosyni Adamopoulou & Ezgi Kaya, 2018. "Young Adults Living with their Parents and the Influence of Peers," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 80(3), pages 689-713, June.
    • Handle: RePEc:bla:obuest:v:80:y:2018:i:3:p:689-713
    DOI: 10.1111/obes.12198
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    2. Adamopoulou, Effrosyni & Greenwood, Jeremy & Guner, Nezih & Kopecky, Karen, 2024. "The Role of Friends in the Opioid Epidemic," CEPR Discussion Papers 18803, C.E.P.R. Discussion Papers.
    3. Ainhoa Aparicio-Fenoll & Veruska Oppedisano, 2016. "Should I stay or should I go? Sibling effects in household formation," Review of Economics of the Household, Springer, vol. 14(4), pages 1007-1027, December.
    4. Yi-Hsuan Lin & Chien-Wen Peng, 2019. "Married Young Adults Living with Parents -- An Analysis of Regional Differences," International Real Estate Review, Asian Real Estate Society, vol. 22(3), pages 433-464.
    5. Agnieszka Sompolska-Rzechuła & Agnieszka Kurdyś-Kujawska, 2022. "Generation of Young Adults Living with Their Parents in European Union Countries," Sustainability, MDPI, vol. 14(7), pages 1-27, April.
    6. Concetta Rondinelli & Roberta Zizza, 2020. "Spend today or spend tomorrow? The role of inflation expectations in consumer behaviour," Temi di discussione (Economic working papers) 1276, Bank of Italy, Economic Research and International Relations Area.
    7. Patacchini, Eleonora & Arduini, Tiziano, 2016. "Residential choices of young Americans," Journal of Housing Economics, Elsevier, vol. 34(C), pages 69-81.
    8. Adamopoulou, Effrosyni, 2016. "Living Arrangements of the Youth: Determinants and Gender Differences/Patrones de convivencia de los jóvenes: Determinantes y diferencias por sexos," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 34, pages 35-44, Enero.
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    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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