Editor:
Universidad Carlos III de Madrid. Departamento de Economía
Issued date:
2013-05
ISSN:
2340-5031
Sponsor:
Ezgi Kaya acknowledges financial support from the Spanish Ministry of Science and Innovation through grant "Consolidated Group-
C" ECO2008-04756 and FEDER.
Serie/No.:
UC3M Working papers. Economics 13-10
Project:
Gobierno de España. ECO2008-04756
Keywords:
Peer effects
,
Friends
,
Living arrangements
,
Leaving parental home
Rights:
Atribución-NoComercial-SinDerivadas 3.0 España
Abstract:
This paper focuses on young adults living with their parents in the U.S. and studies the role of peers. Using data from the National Longitudinal Study of Adolescent Health (Add Health)we analize the influence of high school friends on the coresidence of youngThis paper focuses on young adults living with their parents in the U.S. and studies the role of peers. Using data from the National Longitudinal Study of Adolescent Health (Add Health)we analize the influence of high school friends on the coresidence of young adults with their parents. We address the challenges in the identification of peer effects in a static framework and employ an instrumental variable technique and control for state fixed effects in order to mitigate them. We then move to a dynamic framework and exploit differences in the timing of leaving the parental home among peers. Our results indicate that there are statistically significant peer effects on the nest-leaving behavior of young adults.[+][-]