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High-School Dropouts and Transitory Labor Market Shocks: The Case of the Spanish Housing Boom

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  • Aparicio Fenoll, Ainhoa

    ()
    (Collegio Carlo Alberto)

Abstract

This 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 Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5139.

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Length: 53 pages
Date of creation: Aug 2010
Date of revision:
Handle: RePEc:iza:izadps:dp5139

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Keywords: high-school dropout; housing boom; Spain;

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Cited by:
  1. 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 Espa�a Working Papers 1208, Banco de Espa�a.
  2. 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).
  3. Gianluca Benigno & Luca Fornaro, 2013. "The Financial Resource Curse," CEP Discussion Papers dp1217, Centre for Economic Performance, LSE.
  4. 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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