The Unequal Opportunity for Skills Acquisition during the Great Recession in Europe

Abstract

This paper is the first to investigate the extent to which the high levels of jobless-ness resulting from the Great Recession across Europe have translated into higher school attendance among youth. Using cross-sectional and longitudinal data from the EU-SILC for 28 countries, we establish a robust counter-cyclical relationship between rising unemployment rates and school enrolment. The same is true of transitions back to education. Our analysis by subgroups reveals a worrying trend, with youths who have the most disadvantaged backgrounds (measured by low household income) less likely to enrol in tertiary studies when unemployment rises.

Keywords: Unemployment, school enrolment, transitions back to education, youth, Great Recession, EU-SILC

JEL Classification: I23, I24, J64, E32