Housing Booms and Busts, Labor Market Opportunities, and College Attendance
Kerwin Kofi Charles, Erik Hurst, Matthew J. Notowidigdo
American Economic Review · 2018 · Volume 108 · Issue 10
Abstract
We study how the recent housing boom and bust affected college enrollment during the 2000s. We exploit cross-city variation in local housing booms, which improved labor market opportunities for young men and women. We find that the boom lowered college enrollment, with effects concentrated at two-year colleges. The decline in enrollment during the boom was generally reversed during the bust; however, attainment remains persistently low for particular cohorts, suggesting that reduced educational attainment is an enduring effect of the recent housing cycle. The housing boom can account for approximately 25 percent of the recent slowdown in college attainment.
Keywords
Higher Education, Research Institutions, Education and Economic Development, Human Capital, Skills, Occupational Choice, Labor Productivity, Wage Level and Structure, Wage Differentials, Urban, Rural, Regional, Real Estate, and Transportation Economics: Housing Demand, Housing Supply and Markets
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