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Title: The Effect of Job Displacement on College Enrollment: Evidence from Ohio

Citation Type: Working Paper

Publication Year: 2020

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Abstract: Displaced workers su er large and persistent earnings losses. These losses can be mitigated by returning to school, yet the extent to which such workers enroll in post-secondary education in response to displacement is poorly understood. Using employer-employee-student matched administrative data from Ohio, we provide the rst direct evidence of workers’ enrollment responses following mass layo s in the United States. Close to 10% of these displaced workers enroll in public two- or four-year colleges after displacement, with the typical enrollment persisting for ve semesters and 29% completing a degree. However, much of this enrollment may have occurred regardless of the displacement. To estimate a causal e ect, we compare displaced workers over time to similar non-displaced workers. We estimate that for every 100 displaced workers, only about 1 is ever induced to enroll in a public college as a result. This e ect is concentrated almost entirely among displaced manufacturing workers, who enroll at a rate of 2.5 per every 100. Such workers with lower within- rm earnings and from local labor markets with limited for-pro t college options are the most likely to enroll in public institutions.

Url: https://www.nber.org/system/files/working_papers/w27694/w27694.pdf

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Authors: Minaya, Veronica; Moore, Brendan; Scott-Clayton, Judith; Abraham, Katharine; Foote, Andrew; Grosz, Michel; Hyman, Ben; Iatarola, Patrice; Kelchen, Robert; Lee, Jason; Ni, Karen; Patterson, Christina; Rothstein, Jesse; Skandalis, Daphne; Spletzer, Jim; Urquiola, Miguel

Series Title: NBER Working Paper Series

Publication Number: 27694

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Pages: 1-70

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Data Collections: IPUMS CPS

Topics: Education, Work, Family, and Time

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