Youth Emancipation and the Labour Market in Spain

Abstract

Summary: This paper studies the effects of a negative economic shock on short-and long-term youth emancipation in Spain over the period 1995-2017. We use a vector autoregressive (VAR) model with different endogenous and exogenous variables which might have an impact on youth residential emancipation accord-ing to the academic literature. The results show how emancipation is impacted negatively by the shock after two quarters on average. Following this, the situa-tion returns to its prior state at an accelerated rate. We also find that, in the short-term, the unemployment rate has a greater influence than the temporary employ-ment rate on youth emancipation. In the long-term, this trend is reversed. To conclude, we find that emancipation processes do not depend as much on entry into the labour market as they do on the conditions to stay in it.