Household arrangements and human capital investment decisions of young Italians with a high school diploma are analysed. A model of the choices of residing with parents or forming a new family, jointly with those of investing in either work experience, or further education, or stopping investment is estimated. The results show that family background has a major impact on the decision to study, housing costs induce co‐residence, and unemployment increases the probability of studying. Education policies subsidising university studies on a merit ground would thus reduce income inequality, housing allowances would favour marriage, and labour policies would have the side‐effect of decreasing university dropouts.
Claudia Giannelli, G. and Monfardini, C. (2000), "A nest or a golden cage? Family co‐residence and human capital investment decisions of young adults", International Journal of Manpower, Vol. 21 No. 3/4, pp. 227-245. https://doi.org/10.1108/01437720010336012
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