ABSTRACT
This chapter follows and updates an empirical study of Parisi (2008) about the link between the poverty status of young people who leave home and the economic status of their family of origin. It is motivated by three stylized facts. First of all is the need to depict the effect of the economic crisis on leaving home and poverty in the southern European countries. Figure 10.1 shows that there are differences before and after 2008 in the probability of living in the parental home. In particular, it seems that after the economic crisis the share of young southern Europeans staying at home increases. This pattern is completely different from that observed for their northern counterparts such as the UK. Given the data restriction, we can only consider the first part of the economic crisis following the 2008 subprime crisis in the US and we have to disregard the sovereign debt crisis that affected Europe after 2010.
