Do Rich Parents Make Rotten Daughters?

Abstract

This paper analyzes the reasons behind the coresidence of unmarried Japanese women and their parents. Two kinds of samples are used to deal with the heterogeneities of both the unmarried women and their parents. In both samples, the log wage has a negative impact on co-residence. A one-percent increase in the wage decreases the probability of co-residence by 0.62 percentage points when the heterogeneity of unmarried women is taken into account. Similarly,it decreases the probability of co-residence by 0.72 percentage points when parental heterogeneity is considered. These results suggest that parents who prefer to live with their daughters induce their daughters to live with them, even if their daughters experience high offered wages. In addition,unmarried women whose parents have high incomes are less likely to live with them.