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Returns to Education and Educational Outcomes: The Case of the Spanish Housing Boom

Ainhoa Aparicio-Fenoll

Journal of Human Capital, 2016, vol. 10, issue 2, 235 - 265

Abstract: This paper estimates how returns to education affect school enrollment and grade completion using a novel identification strategy. The strategy exploits construction data for the Spanish housing boom and the fact that the construction sector employs mostly uneducated men. Hence, the Spanish housing boom significantly decreased the returns to education for men while it hardly affected those for women. I show that a 10 percent decrease in the ratio of wages of educated to uneducated individuals leads to a 2 percent decrease in the probability of being enrolled in school and a 0.2 percent decrease in grade completion among 16–18-year-olds.

Date: 2016
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Handle: RePEc:ucp:jhucap:doi:10.1086/686154