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Emancipation under the great recession in Spain

Author

Listed:
  • Namkee Ahn

    (Universidad de Cantabria)

  • Virginia Sánchez-Marcos

    (Universidad de Cantabria)

Abstract

In this paper we document the behavior of emancipation over one of the biggest boom–bust cycles experienced by the Spanish economy. In principle, the economic difficulties faced by the Spanish youth during the last recession would have hampered a normal emancipation pace. However, we find that the proportion living away from parents among those aged 18–40 has not decreased but increased from 44 % during the boom (2005–2008) to 46 % during the bust (2009–2013). A simple decomposition reveals that this is mainly driven by the substantial rise in the emancipation rate among the full-time employed workers during the bust. To explain this change we discuss several factors such as macroeconomic conditions, rental subsidy policy, higher labor mobility, selection bias, reverse causation, time-lag in adjustment and secular trend.

Suggested Citation

  • Namkee Ahn & Virginia Sánchez-Marcos, 2017. "Emancipation under the great recession in Spain," Review of Economics of the Household, Springer, vol. 15(2), pages 477-495, June.
    • Handle: RePEc:kap:reveho:v:15:y:2017:i:2:d:10.1007_s11150-015-9316-7
    DOI: 10.1007/s11150-015-9316-7
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Enrica Di Stefano, 2019. "Leaving your mamma: why so late in Italy?," Review of Economics of the Household, Springer, vol. 17(1), pages 323-347, March.
    2. Catalina Amuedo-Dorantes & Cristina Borra, 2018. "Emerging wealth disparities after the storm: Evidence from Spain," Review of Economics of the Household, Springer, vol. 16(4), pages 1119-1149, December.
    3. Christopoulou, Rebekka & Pantalidou, Maria, 2017. "The parental home as labor market insurance for young Greeks during the crisis," GLO Discussion Paper Series 158, Global Labor Organization (GLO).
    4. Catalina Amuedo-Dorantes & Cristina Borra, 2018. "Internal Mobility after the Expansion of the Welfare State: Evidence from Spain," RF Berlin - CReAM Discussion Paper Series 1806, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    5. Amuedo-Dorantes, Catalina & Borra, Cristina, 2021. "The role of non-contributory pensions on internal mobility in Spain," Labour Economics, Elsevier, vol. 70(C).
    6. Olga Cantó & Inmaculada Cebrián & Gloria Moreno, 2019. "Household precariousness and youth living arrangements in Spain: evidence for a complete business cycle," Working Papers 499, ECINEQ, Society for the Study of Economic Inequality.
    7. Javier Ballesteros Muñoz & Jorge Onrubia, 2022. "Régimen de tenencia de la vivienda habitual y desigualdad de la renta de los hogares españoles," Studies on the Spanish Economy eee2022-26, FEDEA.
    8. Gianluca Cerruti & Gianluca Mazzarella & Mauro Migliavacca, 2023. "Employment protection legislation and household formation: evidence from Italy," Review of Economics of the Household, Springer, vol. 21(3), pages 913-939, September.
    9. Fernando Alexandre & Pedro Bação & Miguel Portela, 2020. "Is the basic life-cycle theory of consumption becoming more relevant? Evidence from Portugal," Review of Economics of the Household, Springer, vol. 18(1), pages 93-116, March.
    10. Christopoulou, Rebekka & Pantalidou, Maria, 2022. "The parental home as labor market insurance for young Greeks during the Great Recession," Journal of Demographic Economics, Cambridge University Press, vol. 88(3), pages 313-350, September.
    11. Adelaido García-Andrés & Jose N. Martinez & Ernesto Aguayo-Téllez, 2021. "Leaving the Nest or Living with Parents: Evidence from Mexico’s Young Adult Population," Review of Economics of the Household, Springer, vol. 19(3), pages 913-933, September.

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    More about this item

    Keywords

    Emancipation; Great recession; Labor market; Rental subsidy; Housing markets;
    All these keywords.

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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