The local labour market's effect on decisions to enter secondary-level education.
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The study enquires how far families deciding about further education after the eight years of primary education pay heed to the likely labour-market return on such schooling. The analysis rests on the relation between the unemployment rate at district level and further studies, based on a cross-sectional estimate. It emerges that unemployment prompts families to be more ambitious in their decisions about further education. This effect is stronger for children whose parents have a low level of schooling, which suggests that the differing alternative costs of education is the prime factor behind the relation. The effect is weak, however, in terms of the parents' level of schooling - the primary determinant of further studies. The findings show also that differences according to type of settlement found in the proportion of those continuing their studies can be attributed in part to the level-of-schooling structure among the parents.
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