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Academic performance and the Great Recession

Author

Listed:
  • Effrosyni Adamopoulou

    (Bank of Italy)

  • Giulia Martina Tanzi

    (Bank of Italy)

Abstract

In this paper we study how the Great Recession affected university students in terms of performance, with a focus on the drop-out probability. To do so, we use individual-level data on a representative sample of university students in Italy in 2007 and 2011. We measure the severity of the recession in terms of increases in the adult and youth unemployment rates and we exploit geographical variation to achieve identification. On the one hand, an increase in the adult male unemployment rate worsens the financial condition of the family, raising the drop-out probability. On the other hand, by reducing the opportunity cost of tertiary education, an increase in the youth unemployment rate reduces the drop-out probability. Focusing on students who were enrolled at university before the Recession we are able to study the effects of the crisis on performance net of any potential effect on enrolment. We find evidence that overall, university drop-out decreased as a result of the Recession and that the probability of graduating on time increased for more motivated students.

Suggested Citation

  • Effrosyni Adamopoulou & Giulia Martina Tanzi, 2014. "Academic performance and the Great Recession," Temi di discussione (Economic working papers) 970, Bank of Italy, Economic Research and International Relations Area.
  • Handle: RePEc:bdi:wptemi:td_970_14
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    References listed on IDEAS

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    Cited by:

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    3. Iacopo Odoardi & Donatella Furia & Piera Cascioli, 2021. "Can social support compensate for missing family support? An examination of dropout rates in Italy," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(1), pages 121-139, February.

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    More about this item

    Keywords

    academic performance; drop-out; Great Recession; unemployment;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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