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Higher education decisions and macroeconomic conditions at age eighteen

Author

Listed:
  • Jennifer Graves

    (Universidad Autónoma de Madrid)

  • Zoë Kuehn

    (Universidad Autónoma de Madrid)

Abstract

Using individual data from PIAAC and data on youth unemployment for 18 countries, we test how macroeconomic conditions experienced at age eighteen affect the following decisions in post-secondary and tertiary education: (i) enrollment (ii) dropping-out, (iii) type of degree completed, (iv) area of specialization, and (v) time-to-degree. We also analyze how the effects vary by gender and parental background. Our findings differ across geographies (Anglo-Saxon, Southern European, Western European, and Scandinavian countries), which shows that the impacts of macroeconomic conditions on higher education decisions depend on context, such as labor markets and education systems. By analyzing various components of higher education together, we are able to obtain a clearer picture of how during economic downturns potential mechanisms interact to determine higher education decisions.

Suggested Citation

  • Jennifer Graves & Zoë Kuehn, 2022. "Higher education decisions and macroeconomic conditions at age eighteen," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 13(1), pages 171-241, May.
    • Handle: RePEc:spr:series:v:13:y:2022:i:1:d:10.1007_s13209-021-00252-6
    DOI: 10.1007/s13209-021-00252-6
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    More about this item

    Keywords

    Higher education decisions; Macroeconomic conditions; PIAAC;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education

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