Micro-Econometric Analysis of New Household Formation in Spain

Abstract

This paper begins a new line in the estimate and classification of New household formation in Spain. It starts with the study of the emancipation of young people dependent of their parents and proposes a micro-econometric analysis to find and measure socioeconomic factors that affect the decisions youngsters make when they leave their parent's home. In the first place a discrete choice model three level nested multinomial logit based in population characteristics is proposed. In order to improve the results avoiding systematic biases and making use of all the information in the data source, the model is replaced by a sequence of three binary logits. The period of study extends from 2008 to 2011 so it will be useful to find evidence of how the economic crisis has affected the current trends of Spanish growing New household formation levels and increasing emigration of young dependents. The gap between Spain and the rest of European countries concerning Emancipation and New household formation levels is reducing since the last nineties but the high level of unemployment in the current crisis has supposed a brake in that trend.