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The Regional Anatomy of School Dropouts in Spain: The Role of the Industry Structure of Local Labour Markets

Author

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  • Diaz-Serrano, Luis

    (Universitat Rovira i Virgili)

  • Nilsson, William

    (University of the Balearic Islands)

Abstract

A number of studies have examined the impact of local labor market conditions on school dropout. However, none of them have considered the role of the industry structure. We construct data for a panel of Spanish regions and identify the effect of local labor markets using a variation of the share of employment by industry across regions and over time. In order to control for the huge structural and conjunctural heterogeneity across Spanish regions in the school dropout rate, we use a fixed-effects model with region specific slopes. We run separate regressions for boys and girls. We find a sizable impact of the industry structure and observe that in markets with a higher share low-skill employment the school dropout rate is significantly larger, though the industries affecting boys and girls are different. Our results suggest that the supply of skilled employment in the economy may allow to keep an important share of school dropouts in the school.

Suggested Citation

  • Diaz-Serrano, Luis & Nilsson, William, 2020. "The Regional Anatomy of School Dropouts in Spain: The Role of the Industry Structure of Local Labour Markets," IZA Discussion Papers 13220, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp13220
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    More about this item

    Keywords

    educational attainment; Spain; labour market; youth employment; skills;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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