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School as a shelter? School leaving-age and the business cycle in France

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  • M. GAINI

    (Crest-Insee)

  • A. LEDUC

    (Insee)

  • A. VICARD

    (Insee)

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    Abstract

    This paper examines the impact of the business cycle on school-leaving decisions in France for the period 1983-2009. Business cycle effects are twofold. On the one hand, bad economic conditions reduce the opportunity cost of schooling and may induce higher school participation. On the other hand, it could entail a loss of income for families which may bear no more the cost of their children's education. Using the French Labor Force Surveys, we estimate the effects of current and past unemployment rates on school leaving decisions. We find that some students postpone their entry into the labor market during an economic crisis. Younger students and students from lower social background at a given age are slightly more likely to delay their entry in the labor market. These effects are statistically significant but weak. Our results suggest that most students have an education target level or that only few of them are able to anticipate or postpone their entry to mitigate the effects of the business cycle.

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    File URL: http://www.insee.fr/en/publications-et-services/docs_doc_travail/G2012-04.pdf
    File Function: Document de travail de la DESE numéro G2012-04
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    Bibliographic Info

    Paper provided by Institut National de la Statistique et des Etudes Economiques, DESE in its series Documents de Travail de la DESE - Working Papers of the DESE with number g2012-04.

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    Date of creation: 2012
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    Handle: RePEc:crs:wpdeee:g2012-04

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    Related research

    Keywords: Business cycle; Endogeneous labour market entry; Initial labour market conditions;

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    1. Julian R. Betts & Laurel L. McFarland, 1995. "Safe Port in a Storm: The Impact of Labor Market Conditions on Community College Enrollments," Journal of Human Resources, University of Wisconsin Press, vol. 30(4), pages 741-765.
    2. Harris Dellas & Plutarchos Sakellaris, 2003. "On the cyclicality of schooling: theory and evidence," Oxford Economic Papers, Oxford University Press, vol. 55(1), pages 148-172, January.
    3. Messer, Dolores & Wolter, Stefan C., 2007. "Time-to-Degree and the Business Cycle," IZA Discussion Papers 2787, Institute for the Study of Labor (IZA).
    4. Yuji Genda & Ayako Kondo & Souichi Ohta, 2010. "Long-Term Effects of a Recession at Labor Market Entry in Japan and the United States," Journal of Human Resources, University of Wisconsin Press, vol. 45(1).
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