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

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  • Ainhoa Aparicio

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.

Suggested Citation

  • 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.
    • Handle: RePEc:cca:wpaper:158
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    File URL: https://www.carloalberto.org/wp-content/uploads/2018/11/no.158.pdf
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    Cited by:

    1. Stéphane Bonhomme & Laura Hospido, 2017. "The Cycle of Earnings Inequality: Evidence from Spanish Social Security Data," Economic Journal, Royal Economic Society, vol. 127(603), pages 1244-1278, August.
    2. Kristine Simson, 2015. "Explaining upper secondary school dropout: new evidence on the role of local labor markets," Empirical Economics, Springer, vol. 48(4), pages 1419-1444, June.
    3. Juan Guio & Álvaro Choi & Josep-Oriol Escardíbul, 2016. "Labor markets, academic performance and the risk of school dropout: evidence for Spain," Working Papers 2016/9, Institut d'Economia de Barcelona (IEB).
    4. Gianluca Benigno & Luca Fornaro, 2014. "The Financial Resource Curse," Scandinavian Journal of Economics, Wiley Blackwell, vol. 116(1), pages 58-86, January.
    5. Max Coveney & Pilar García‐Gómez & Eddy Van Doorslaer & Tom Van Ourti, 2016. "Health Disparities by Income in Spain Before and After the Economic Crisis," Health Economics, John Wiley & Sons, Ltd., vol. 25(S2), pages 141-158, November.
    6. Aitor Lacuesta & Sergio Puente & Ernesto Villanueva, 2020. "The schooling response to a sustained increase in low-skill wages: evidence from Spain 1989–2009," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 11(4), pages 457-499, December.
    7. Florentino Felgueroso & Maria Gutiérrez-Domènech & Sergi Jiménez-Martín, 2014. "Dropout trends and educational reforms: the role of the LOGSE in Spain," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-24, December.
    8. Anna Zaharieva, 2014. "On-the-Job Search and Optimal Schooling under Uncertainty and Irreversibility," Politica economica, Società editrice il Mulino, issue 2-3, pages 299-339.

    More about this item

    Keywords

    High-school dropout; housing boom; Spain;
    All these keywords.

    JEL classification:

    • 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

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