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Academic Drop-Out and the Great Recession

Effrosyni Adamopoulou and Giulia Martina Tanzi

Journal of Human Capital, 2017, vol. 11, issue 1, 35 - 71

Abstract: We use data on three cohorts of university students in Italy to study how the Great Recession affected their drop-out probability. On the one hand, the deterioration of their families’ financial condition could lead to higher drop-out probability. On the other hand, the lower opportunity cost of tertiary education could translate into stronger incentives to continue studying. We examine these two channels, using the adult and youth unemployment rates and exploiting their variation across regions, genders, and educational levels. We find that, netting out any potential effect on enrollment, the drop-out probability decreased as a result of the Recession.

Date: 2017
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Handle: RePEc:ucp:jhucap:doi:10.1086/690650