Mechanism M1
Conversion and shelter: the household that never forms
Status
Supported. The co-movement is documented across EU-SILC and the causal chain is standard household economics. The AI acceleration of the first term is new and rated correlational.
The proposed pathway
- Fewer entry-level jobs
- No housing deposit
- Delayed households
Pathway
Without the entry-level job there is no deposit. Without the deposit there is no household. Without the household, family formation is deferred or abandoned. The two pressures are one biography: the graduate in the childhood bedroom.
Micro anchor
The bottom rung is where AI bites first. The Stanford and ADP payroll finding shows a 16 per cent relative employment fall for 22-to-25-year-olds in the most exposed occupations, through hiring cessation. The coupling tightens fastest where shelter pressure is already highest.
Control case
A country with high youth unemployment but cheap housing should show weaker downstream effects than where both are tight. Spain against the UK and Ireland.
What would falsify it
Panel countries where both families sit in the worst tercile but living-with-parents and partnering rates track the panel average for five years or more.