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 Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5139.
Length: 53 pages
Date of creation: Aug 2010
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Other versions of this item:
- Ainhoa Aparicio, 2010. "High-School Dropouts and Transitory Labor Market Shocks: The Case of the Spanish Housing Boom," Carlo Alberto Notebooks 158, Collegio Carlo Alberto.
- 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-2010-08-28 (All new papers)
- NEP-EUR-2010-08-28 (Microeconomic European Issues)
- NEP-LAB-2010-08-28 (Labour Economics)
- NEP-URE-2010-08-28 (Urban & Real Estate Economics)
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