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Factors affecting the schooling performance of secondary school pupils - the cost of high unemployment and imperfect financial markets

Author

Listed:
  • Claudia Trentini

    (EUI Florence)

  • Lídia Farré

    (Universidad de Alicante)

Abstract
This paper investigates the implications of major ¯nancial markets crises for the human capital accumulation decisions of households. We use data for Argentinean households over the period 1995-2002 to examine households' response to negative idiosyncratic income shocks in di®erent macroeconomic scenarios. In particular we study how teenagers' school progress responds to household head unemployment during periods of high economic growth and compare it to the response during recession years, when families are more likely to be ¯nancially constrained. After accounting for the potential endogeneity of household head unemployment we ¯nd that school failure in response to unemployment shocks increases during periods of economic instability and that, at least for boys, this results from a greater involvement in labor market activities. Our results add to the existing literature on the long term cost of macroeconomic crises.

Suggested Citation

  • Claudia Trentini & Lídia Farré, 2009. "Factors affecting the schooling performance of secondary school pupils - the cost of high unemployment and imperfect financial markets," Working Papers. Serie AD 2009-07, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasad:2009-07
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    File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-2009-07.pdf
    File Function: Fisrt version / Primera version, 2009
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    Cited by:

    1. Sonia Oreffice & Climent Quintana, 2009. "Anthropometry and Socioeconomics in the Couple: Evidence from the PSID," Working Papers 2009-22, FEDEA.

    More about this item

    Keywords

    imperfect credit markets; human capital; parental unemployment;
    All these keywords.

    JEL classification:

    • D52 - Microeconomics - - General Equilibrium and Disequilibrium - - - Incomplete Markets
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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