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The Long-Run Effects of Teacher Strikes: Evidence from Argentina

Journal of Labor Economics 2019 37(4), 1097-1139
We exploit cross-cohort variation in the prevalence of teacher strikes within and across provinces in Argentina to examine how teacher strikes affect student long-run outcomes. Being exposed to the average incidence of strikes during primary school reduces labor earnings of males and females by 3.2% and 1.9%, respectively. A back-of-the-envelope calculation suggests that this amounts to an aggregate annual earnings loss of $2.34 billion. We also find an increase in unemployment and a decline in the skill levels of the occupations into which students sort. These effects are driven, at least in part, by a reduction in educational attainment.