Crises and Educational Attainment

Abstract

Between 1910 and 1940, the high school graduation rate in the United States increased five-fold, setting the stage for human capital-led economic growth throughout the 20th century. This study examines the effects of the Great Depression’s surge in youth unemployment on educational attainment during the 1930s, with a focus on gender and socioeconomic disparities. Using data from the 1940 Census and novel city-level unemployment rates, the analysis shows that increased youth unemployment significantly boosted high school and post-secondary completion rates among young males, particularly those from higher socioeconomic backgrounds. In contrast, the effect on females and lower-income youths was negligible. I find minimal short-term labor market impacts by 1940. The results highlight the critical role of household resources in leveraging educational opportunities during the Great Depression and suggest that financial constraints may have prevented disadvantaged groups from benefiting equally from reduced opportunity costs during a crucial period during the high school movement. 

Keywords: Great Depression, Educational Attainment, Youth Unemployment