How educational choices respond to large labor market shocks: Evidence from a natural experiment
Ayhab F. Saad and
Labour Economics, 2020, vol. 66, issue C
This paper uses the closure of the Israeli labor market as a large labor market shock and examines its impact on Palestinian youths' educational choices. The sudden closure denied thousands of Palestinian workers, mostly low-skilled males, access to the Israeli labor market. We provide evidence that the conflict-induced labor demand shock reduced the opportunity cost of attending school and consequently, male students' high school dropout rates.
Keywords: High school dropout; The opportunity cost of school; Large labor demand shock; Palestinian youth (search for similar items in EconPapers)
JEL-codes: I20 I26 J2 J24 O12 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:66:y:2020:i:c:s0927537120301056
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