The impact of income and occupational status on leaving home: evidence from the Italian ECHP sample

In this paper we investigate the role economic resources play in the decision of young Italian adults to leave the parental home. This is of particular interest given that, in Italy, young people leave home considerably later than in other European countries. We use the first two waves of the Italian sample of the European Community Household Panel. We use a Heckman selection-type probit procedure to account for left censoring and unobserved heterogeneity. We find that economic circumstances are important. In particular we find that men’s employment status is a crucial factor in leaving home. We also find noticeable gender differences. For men stable employment is the most important prerequisite to starting their own household, whereas for women, acquiring a partner is the crucial step to becoming independent of their parents. (AUTHORS)