We study how economic conditions at the time of choosing post-compulsory education affect intergenerational mobility. Exploiting local variation in birthplace unemployment rate at age 16 across 23 cohorts in France, we find that cohorts deciding on post-compulsory education in bad economic times are more educationally mobile – their level of education is less related to having a white-collar father. These cohorts are also more occupationally mobile; and a large fraction of this effect is explained by business cycle-induced differences in educational attainment. Accounting for differential spatial mobility between birth and age 16 by parental background confirms the results.
Arenas Jal, A., & Melgouyres, C. (2017). Countercyclical school attainment and intergenerational mobility (CORE Discussion Paper 2017/38). https://hdl.handle.net/2078.5/176555