The heterogeneous impacts of business cycles on educational attainment

Ernest Boffy-Ramirez

Education Economics, 2017, vol. 25, issue 6, 554-561

Abstract: This study examines the impact of fluctuations in the unemployment rate before high school graduation on educational attainment measured 30 years later. I find evidence that important heterogeneity is masked by estimating average effects across the ability distribution. Using data from the 1979 National Longitudinal Survey of Youth, this analysis identifies individuals who are on the boundary between pursuing and not pursuing additional education. Exposure to a higher unemployment rate at age 17 is associated with higher educational attainment for men in the 60–80th quintile of the ability distribution. There is no evidence of an effect beyond this quintile.

Date: 2017
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Working Paper: The Heterogeneous Impacts of Business Cycles on Educational Attainment (2016)
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DOI: 10.1080/09645292.2017.1336511

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