High-School Dropouts and Transitory Labor Market Shocks: The Case of the Spanish Housing Boom

Ainoa Aparicio

No 5139, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper addresses the implications of transitory changes in labor market conditions for low versus high educated workers on the decision to acquire education. To identify this effect, I use the improvement in the labor market prospects of low educated workers motivated by the increases in employment and wages in the construction sector during the recent housing boom. The estimation strategy is based on the fact that changes in the labor market driven by the construction sector affect only men. Increases in construction activity are found to increase men's propensity to drop out of high-school, relative to women. According to this finding, policies promoting education should strengthen when in the presence of transitory shocks in the labor market that make dropping out more attractive.

Keywords: housing boom; high-school dropout; Spain (search for similar items in EconPapers)
JEL-codes: I20 J22 J24 L74 (search for similar items in EconPapers)
Pages: 53 pages
Date: 2010-08
New Economics Papers: this item is included in nep-eur, nep-lab and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

Published - published as 'Returns to Education and Educational Outcomes: The Case of the Spanish Housing Boom', in: Journal of Human Capital, 2016, 10 (2), 235 - 265

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Working Paper: High-School Dropouts and Transitory Labor Market Shocks: The Case of the Spanish Housing Boom (2010)
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