Joint Decisions on Household Membership and Human Capital Accumulation of Youths: The Role of Expected Earnings and Local Markets

摘要: This paper analyzes the effects of expected earnings and local markets conditions on behaviour young adults with high school diplomas. Decisions to either remain in parental home or form a new household are modelled jointly those gaining work experience investing university education. A multinomial probit model estimates probabilities different pairs outcomes. Expected lifetime youths estimated, serve as choice-specific regressors model. According our results, most important factor influencing choice studying residing parents is from degree. sizeable discouraged worker effect induces people study when labour market opportunities poor. The cost housing greatly influences working living home. Two policy experiments offer some suggestions for makers. first one measures extent which policies, targeted at reducing costs, would allow live away second indicates how much lowering youth unemployment desired levels, could decrease number workers that choose study.