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Time-to-degree and the business cycle

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  • Dolores Messer
  • Stefan Wolter

Abstract

This paper presents the results of an empirical investigation trying to explain individual time-to-degree variances with business cycle fluctuations. Assuming that students determine the optimum study length at university weighing up the cost of an additional semester against the consumption benefit of studying and not yet working, the general economic environment during the study period should, in turn, influence the individual time-to-degree through changes in the cost level and the consumption benefit of an additional semester. The investigation, using a representative data-set based on Swiss university graduates from 1981 to 2001, shows that changes in the unemployment rate have a significant impact on individual time-to-degree.

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File URL: http://www.tandfonline.com/10.1080/09645290903102860
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Bibliographic Info

Article provided by Taylor and Francis Journals in its journal Education Economics.

Volume (Year): 18 (2010)
Issue (Month): 1 ()
Pages: 111-123

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Handle: RePEc:taf:edecon:v:18:y:2010:i:1:p:111-123

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Related research

Keywords: time-to-degree; business cycle; consumption benefit;

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References

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  1. Dellas, Harris & Sakellaris, Plutarchos, 1996. "On the cyclicality of schooling: Theory and evidence," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 1997002, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  2. Messer, Dolores & Wolter, Stefan C., 2005. "Are Student Exchange Programs Worth It?," IZA Discussion Papers 1656, Institute for the Study of Labor (IZA).
  3. Brunello, Giorgio & Winter-Ebmer, Rudolf, 2003. "Why do students expect to stay longer in college? Evidence from Europe," Economics Letters, Elsevier, vol. 80(2), pages 247-253, August.
  4. Dellas, Harris & Koubi, Vally, 2003. "Business cycles and schooling," European Journal of Political Economy, Elsevier, vol. 19(4), pages 843-859, November.
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Cited by:
  1. Bradley, Elizabeth S., 2012. "The Effect of the Business Cycle on Freshman Major Choice," MPRA Paper 42412, University Library of Munich, Germany.
  2. Carmen Aina & Eliana Baici & Giorgia Casalone, 2010. "Time-to-Degree: Students' Abilities, University Characteristics or What Else? Evidence from Italy," Working Papers 130, SEMEQ Department - Faculty of Economics - University of Eastern Piedmont.
  3. Denzler, Stefan & Wolter, Stefan C., 2011. "Too Far to Go? Does Distance Determine Study Choices?," IZA Discussion Papers 5712, Institute for the Study of Labor (IZA).
  4. M. Gaini & A. Leduc & A. Vicard, 2012. "School as a shelter? School leaving-age and the business cycle in France," Documents de Travail de la DESE - Working Papers of the DESE g2012-04, Institut National de la Statistique et des Etudes Economiques, DESE.

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