Out of work and into school: Labor market policies and college enrollment during the Great Recession

•Post-secondary enrollment has become more responsive to cyclical downturns during the Great Recession.•The authors identify a substantial role of the UI program in determining post-secondary enrollment among displaced workers.•Longer UI benefit durations increase the likelihood of enrollment among job losers.•Evidence suggests that more inclusive approved training rules magnify the effect of longer UI benefit durations.

The Great Recession brought large increases in unemployment and college enrollment; we examine how changing state labor market conditions and state-specific variation in Unemployment Insurance (UI) interact to affect enrollment outcomes. We identify a substantial role of the UI program in affecting post-secondary enrollment choices. We provide some of the first evidence that the duration of UI affects a displaced individual's propensity to enroll, and suggestive evidence that these effects are larger in states with more inclusive approved training laws. These findings identify a substantial overlap between UI policy and post-secondary enrollment decisions, indicating the potential importance of UI in not only providing income but also facilitating investments in skills.