High-School Dropouts and Transitory Labor Market Shocks: The Case of the Spanish Housing Boom
AbstractThis paper addresses the implications of transitory changes in labor market conditions for low versus high educated workers on the decision to acquire education. To identify this effect, I use the improvement in the labor market prospects of low educated workers motivated by the increases in employment and wages in the construction sector during the recent housing boom. The estimation strategy is based on the fact that changes in the labor market driven by the construction sector affect only men. Increases in construction activity are found to increase men's propensity to drop out of high-school, relative to women. According to this finding, policies promoting education should strengthen when in the presence of transitory shocks in the labor market that make dropping out more attractive.
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Bibliographic InfoPaper provided by Collegio Carlo Alberto in its series Carlo Alberto Notebooks with number 158.
Length: 52 pages
Date of creation: 2010
Date of revision:
High-school dropout; housing boom; Spain;
Other versions of this item:
- Aparicio Fenoll, Ainhoa, 2010. "High-School Dropouts and Transitory Labor Market Shocks: The Case of the Spanish Housing Boom," IZA Discussion Papers 5139, Institute for the Study of Labor (IZA).
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- I20 - Health, Education, and Welfare - - Education - - - General
- L74 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Construction
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-11-06 (All new papers)
- NEP-EDU-2010-11-06 (Education)
- NEP-EUR-2010-11-06 (Microeconomic European Issues)
- NEP-LAB-2010-11-06 (Labour Economics)
- NEP-URE-2010-11-06 (Urban & Real Estate Economics)
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- Stéphane Bonhomme & Laura Hospido, 2012.
"The Cycle Of Earnings Inequality: Evidence From Spanish Social Security Data,"
- Stéphane Bonhomme & Laura Hospido, 2012. "The cycle of earnings inequality: evidence from Spanish social security data," Banco de Espaï¿½a Working Papers 1225, Banco de Espa�a.
- Bonhomme, Stephane & Hospido, Laura, 2012. "The Cycle of Earnings Inequality: Evidence from Spanish Social Security Data," IZA Discussion Papers 6669, Institute for the Study of Labor (IZA).
- Aitor Lacuesta & Sergio Puente & Ernesto Villanueva, 2011. "The schooling response to a sustained increase in low-skill wages: evidence from Spain 1989-2009," Banco de Espaï¿½a Working Papers 1208, Banco de Espa�a.
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- Anna Zaharieva, 2013. "On-the-job search and optimal schooling under uncertainty and irreversibility," Working Papers 492, Bielefeld University, Center for Mathematical Economics.
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