2019
DOI: 10.1016/j.red.2019.03.007
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Agriculture to industry: The end of intergenerational coresidence

Abstract: We show that the structural change of the economy from agriculture to industry was a major determinant of the observed shift in intergenerational coresidence. We build a two-sector overlapping generation model of the structural change out of agriculture, in which the coresidence choice is endogenous. We calibrate the model on US data and simulate it. The model can match well the decline in US intergenerational coresidence between 1870 and 1940.

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Cited by 8 publications
(4 citation statements)
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“…Bethencourt and Rios-Rull (2009) present a similar story for elderly widows. Pensieroso and Sommacal (2019) argue that the shift from agriculture to industry is an important factor for explaining the drop in intergenerational coresidence.…”
Section: Household Sizementioning
confidence: 99%
“…Bethencourt and Rios-Rull (2009) present a similar story for elderly widows. Pensieroso and Sommacal (2019) argue that the shift from agriculture to industry is an important factor for explaining the drop in intergenerational coresidence.…”
Section: Household Sizementioning
confidence: 99%
“…We deduce the value of χ from Pensieroso and Sommacal (2019), who calibrate the growth rate of sectoral productivity to match economic growth in the U.S. and in a sample of West-European countries. This gives χ = 0.443.…”
Section: Simulationsmentioning
confidence: 99%
“…By doing so, we disregard potentially important phenomena like savings or intergenerational co-residence. On this latter point, see the recent contribution ofPensieroso and Sommacal (2017).20 We discuss this assumption and the related critics ofClark et al (2012) in Appendix A.5.…”
mentioning
confidence: 94%