School as a Shelter? School Leaving-Age and the Business Cycle in France
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. 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.
Volume (Year): (2013)
Issue (Month): 111-112 ()
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- 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.
- 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).
- 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).
- 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.
- Dolores Messer & Stefan Wolter, 2010. "Time-to-degree and the business cycle," Education Economics, Taylor & Francis Journals, vol. 18(1), pages 111-123.
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