haku: @indexterm young people / yhteensä: 162
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| Tekijä: | Martins, N. Villanueva, E. |
| Otsikko: | Does high cost of mortgage debt explain why young adults live with their parents? |
| Lehti: | Journal of the European Economic Association
2009 : SEP, VOL. 7:5, p. 974-1010 |
| Asiasana: | mortgages young people labour markets interest rates |
| Kieli: | eng |
| Tiivistelmä: | Young adults leave their parents' homes at a higher rate in Northern Europe or in the United States than in Southern Europe. This affects labor market mobility and fertility. This article analyzes if differences in household formation are associated to differences in access to credit by estimating the impact of the cost of a mortgage on the probability that a young adult leaves his or her parents' home. This survey documents three findings by using a unique data set that links administrative records of debt with the 1998-2004 waves of the Employment Survey. The first result reveals that borrowing among young adults fell when borrowing costs increased. Secondly, it was revealed that the elasticity of new household formation with respect to net interest rates lie between -0,8 and -3,3. The last result suggests that young adults responded to the increase in mortgage costs by delaying home purchases or by reducing the quality of housing services purchased. |
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