How educational choices respond to large labor market shocks: Evidence from a natural experiment

2020/08/08 by Ayhab F. Saad, Belal Fallah · 16 citations
Economics, Econometrics and Finance · Medicine · Social Sciences · #Closure (psychology) #Demand shock #Demographic economics #Dropout (neural networks) #Economics #Fiscal Policy and Economic Growth #Labor demand #Labor relations #Labour economics #Market economy #Medicine #Migration and Labor Dynamics #Monetary economics #Natural experiment #Poverty, Education, and Child Welfare #School dropout #Secondary labor market #Shock (circulatory) #Wage

paper · pdf · doi:10.1016/j.labeco.2020.101901

published in Labour Economics 66, 101901 (Elsevier BV)

openalex publication_date 2020/08/08 · openalex created_date 2025/10/10 · openalex updated_date 2026/08/02

Abstract

This paper uses the closure of the Israeli labor market as a large labor market shock and examines its impact on Palestinian youths' educational choices. The sudden closure denied thousands of Palestinian workers, mostly low-skilled males, access to the Israeli labor market. We provide evidence that the conflict-induced labor demand shock reduced the opportunity cost of attending school and consequently, male students' high school dropout rates.

Citations

• Long-Term Consequences of Natural Resource Booms for Human Capital Accumulation
• No Man Left Behind: Effects of Emigration Prospects on Educational and Labour Outcomes of Non-migrants
• Can migration reduce educational attainment? Evidence from Mexico
• Testing the ‘brain gain’ hypothesis: Micro evidence from Cape Verde
• A Contribution to the Empirics of Economic Growth
• Tight Labor Markets and the Demand for Education: Evidence from the Coal Boom and Bust