Theoretical Framework
This chapter deals with the theoretical basis of our analysis, a simple Roy model setup. Introduced by Roy in 1951 the conceptual framework of the generalized Roy model provides the opportunity to explain self selection behavior by heterogeneity in the characteristics of the agents \cite{Roy1951} . We will use this approach to illustrate the decision process of individuals to leave their parent's household during tertiary education. Note that we will follow the notation in Heckman and Vytlacil 2005 \citep*{Heckman_2005}.