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Title: Tenure Choice of American Youth
Resulting in 1 citation.
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Haurin, Donald R. Hendershott, Patric H. Kim, Dongwook |
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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. |
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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. |