Has the Housing Boom Decreased School Enrolments in Spain?

Mariña Fernandez Salgado, University of Essex

This paper evaluates the impact of the housing boom on post-compulsory education enrolments in Spain. Using data from the Spanish Labour Force Survey, I identify the effect of the housing boom on dropouts through the demand for construction workers across Spanish regions. Findings highlight the probability of dropout increases less for children affected by the housing boom than for those non-affected. However, children's responses depend on their gender and parental education. Results point out two divergent effects of the demand for construction workers and the increase in their wages on the probability of dropout. On the one hand, it decreases males’ skill premium leading to a decrease in enrolments. On the other hand, it improves the economic status of low skilled parents and hence, encourages their children’s demand for post-compulsory education.