Labor markets, academic performance and school dropout risk: evidence for Spain

Abstract

The purpose of this paper is to provide a better understanding of the links between labor market conditions and academic performance by disentangling the effects of unemployment. The contribution of this study is, therefore, threefold: first, it provides new evidence on the link between labor market conditions and educational decisions; second, it quantifies separately the two separate effects of unemployment on academic performance at age 15; and third, it analyses heterogeneous effects of the "family" and "local labor market" - proxied through the unemployment rate of the school community - effects.