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Countercyclical School Attainment and Intergenerational Mobility

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  • Andreu Arenas, Clément Malgouyres
Abstract
We study how economic conditions at the time of choosing post-compulsory education affect intergenerational mobility. Exploiting local variation in birthplace unemployment rate at age 16 across 23 cohorts in France, we find that cohorts deciding on post-compulsory education in bad economic times are more educationally intergenerationally mobile – their level of educational attainment is less related to having a white-collar father. These cohorts are also more occupationally intergenerationally mobile; and a large fraction of this effect is explained by business cycle-induced differences in educational attainment. Results are robust to accounting for differential spatial mobility between birth and age 16 by parental occupation. Finally, we provide additional evidence that high local unemployment at age 16 increases the relative school enrollment rate of children of blue collar workers the year after – at age 17.

Suggested Citation

  • Andreu Arenas, Clément Malgouyres, 2018. "Countercyclical School Attainment and Intergenerational Mobility," Working papers 679, Banque de France.
    • Handle: RePEc:bfr:banfra:679
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    2. Barbara Castillo Rico, 2020. "Trends in intergenerational homeownership mobility in France between 1960-2015," AMSE Working Papers 2008, Aix-Marseille School of Economics, France.
    3. Bičáková, Alena & Cortes, Guido Matias & Mazza, Jacopo, 2023. "Make your own luck: The wage gains from starting college in a bad economy," Labour Economics, Elsevier, vol. 84(C).
    4. Arenas, Andreu & Calsamiglia, Caterina, 2022. "Gender Differences in High-Stakes Performance and College Admission Policies," IZA Discussion Papers 15550, Institute of Labor Economics (IZA).
    5. Gobbi, Paula Eugenia & ,, 2018. "Economic Uncertainty and Fertility Cycles: The Case of the Post-WWII Baby Boom," CEPR Discussion Papers 13374, C.E.P.R. Discussion Papers.

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    More about this item

    Keywords

    Intergenerational mobility; business cycle; human capital; occupational choice;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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