Abstract
This paper examines the impact of parental economic support and housing market on young people’s independence. Based on Youth Panel Survey data in 2015~2019, various panel models were estimated to understand young people’s independence. In empirical studies, it is important to account for the unobserved characteristics. The endogeneity problems may arise if the unobserved characteristics are not considered. Thus, this study apply a correlated random effect model(CRE) to deal with the endogeneity issue. The findings reveal that, with no consideration for endogeneity, most explanatory variables affect the independence of the young people. However, when applying the correlated radon effect model, the estimation results indicate that parental economic support and housing market such as the rate of change in housing price and chonsei price and the ratio of gift transaction are more likey to be the significant determinant, although young people’s economic status variables like income and debt are not statistically significant.
Published Version
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