Do Recessions Keep Students in School? The Impact of Youth Unemployment on Enrolment in Post-compulsory Education in England

Abstract

In this paper I assess the impact of the youth labour market on enrolment in post-compulsory education. To that end, I construct data for a panel of English regions and identify youth labour market effects using variation in youth unemployment rates across regions and over time. My estimates suggest that the youth labour market has large enrolment impacts, at least twice as large as suggested by UK estimates based on time series data. This helps to explain why enrolment growth slowed down from the mid-1990s and suggests that a weakening youth labour market could cause enrolment to increase again.