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Author: Kim, Dongwook
Resulting in 4 citations.
1. Haurin, Donald R.
Hendershott, Patric H.
Kim, Dongwook
Housing Decisions of American Youth
Journal of Urban Economics 35,1 (January 1994): 28-45.
Also: http://www.sciencedirect.com/science/article/pii/S0094119084710023
Cohort(s): NLSY79
Publisher: Academic Press, Inc.
Keyword(s): Cohabitation; Demography; Earnings; Family Background; Family Formation; Home Ownership; Household Composition; Household Structure; Labor Supply

The relationship of household tenure decision with household formation and labor supply choices is examined. Primary data used was the 1987 National Longitudinal Survey of Youth which was filled out by respondents aged 22 to 29 years old. Results show that young adults' decisions whether to live alone (single/married), or to cohabit with parents or other adults is influenced by potential earnings and housing rental costs. Household tenure choice, on the other hand, depends on wealth, the relative homeowning cost and demographic variables such as gender, presence of children and race. Finally, housing demand is swayed by potential wage, wealth and owner cost, but not by demographic and family background factors.
Bibliography Citation
Haurin, Donald R., Patric H. Hendershott and Dongwook Kim. "Housing Decisions of American Youth." Journal of Urban Economics 35,1 (January 1994): 28-45.
2. Haurin, Donald R.
Hendershott, Patric H.
Kim, Dongwook
Real Rents and Household Formation: The Effect of the Tax Reform Act of 1986
Working Paper, Department of Economics, The Ohio State University, Columbus OH, 1990
Cohort(s): NLSY79
Publisher: Department of Economics, The Ohio State University
Keyword(s): Assets; Family Income; Household Models; Household Structure; Income; Marital Status; Residence; Taxes; Wages

Permission to reprint the abstract has not been received from the publisher.

Although the economic literature has analyzed some components of the headship decision, study of household formation has been primarily in the realm of demography. The authors begin this analysis with a pure demographic model and expand it to include additional determinants of the decision to remain with parents or not, to marry or not, and to live with a group or separately. The results, based on a sample of 2355 youth in their twenties from the NLSY, indicate that (1) rental costs, wealth, and the potential wage that a youth could earn are important variables in explaining the outcomes of these choices and (2) inclusion of the economic variables significantly changes the estimated impacts of the demographic variables. One insight that the expanded economic model allows is the prediction that some public policies will affect headship rates of youth. This prediction is of interest because choices of living arrangements often have implications for demands upon public services and housing. Using as an example the 1986 Tax Reform Act, the authors focus on a single outcome: the expectation of higher rental costs. If rentals rise by 20 percent, as predicted by some tax analysts, there will be an estimated half million reduction in the number of 1986 households formed by youth ages 21 to 29.
Bibliography Citation
Haurin, Donald R., Patric H. Hendershott and Dongwook Kim. "Real Rents and Household Formation: The Effect of the Tax Reform Act of 1986." Working Paper, Department of Economics, The Ohio State University, Columbus OH, 1990.
3. Haurin, Donald R.
Hendershott, Patric H.
Kim, Dongwook
Tenure Choice of American Youth
Working Paper, Department of Economics, The Ohio State University, Columbus OH, 1990
Cohort(s): NLSY79
Publisher: Department of Economics, The Ohio State University
Keyword(s): Family Income; Home Ownership; Household Structure; Marital Status; Simultaneity; Wages; Wealth

Permission to reprint the abstract has not been received from the publisher.

While there seems to be no end to estimates of housing tenure determinants, prior studies have not accounted for the simultaneity of tenure choice with household formation, labor supply or the marriage decision. Estimates presented here are superior to those in the literature both because the authors address these issues and because they better measure the cost of owning relative to renting. Accounting for simultaneity with the household formation and labor supply decisions matter. Using a household's predicted wage rate rather than its observed income doubles the response of tenure choice to the price of owning relative to renting. Including household formation selectivity correction variables cuts the response of tenure choice to the predicted wage by 25 percent. Moreover, the impact of variations in demographic variables on tenure choice is sharply reduced after correcting for selectivity bias.
Bibliography Citation
Haurin, Donald R., Patric H. Hendershott and Dongwook Kim. "Tenure Choice of American Youth." Working Paper, Department of Economics, The Ohio State University, Columbus OH, 1990.
4. Haurin, Donald R.
Hendershott, Patric H.
Kim, Dongwook
The Impact of Real Rents and Wages on Household Formation
Review of Economics and Statistics 75,2 (May 1993): 284-293.
Also: http://www.jstor.org/stable/2109434
Cohort(s): NLSY79
Publisher: Harvard University Press
Keyword(s): Demography; Household Composition; Household Income; Local Labor Market; Regions

Permission to reprint the abstract has not been received from the publisher.

Although the economic literature has analyzed some components of the headship decision, study of household formation has been primarily in the realm of demography. We expand the demographic model to include economic determinants of the decision to remain with parents or not, and to live with a group or separately. We focus on measuring the effect of spatial variations in rental costs on the probability of forming a household. Our results, based on a sample of 2,573 youths in their twenties, indicate that the cost of housing and potential labor earnings are important variables in explaining this probability.
Bibliography Citation
Haurin, Donald R., Patric H. Hendershott and Dongwook Kim. "The Impact of Real Rents and Wages on Household Formation." Review of Economics and Statistics 75,2 (May 1993): 284-293.