Labour Market Outcomes and Skill Acquisition of High-School Dropouts
AbstractWe utilize an instrumental variable approach to analyse the effect that dropping out of high school has on 17 outcomes pertaining to wages, employment and subsequent skill acquisition for youths. Our analysis is based on the older cohort of the Youth in Transition Survey (YITS) for 2003, an ideal data set because it contains a rich array of outcome measures and their observable determinants as well as variables for instrumenting the dropout indicator (based on a link to the 1999 data). Our analysis indicates that dropouts have poorer wage and employment outcomes, and they do not make up for their lack of education through additional skill acquisition and training. The analysis thereby suggests that policies to curb dropping out could have both desirable efficiency effects (high returns) as well as distributional effects (high returns to otherwise more disadvantaged groups) and potential social spillover affects.
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Bibliographic InfoArticle provided by Springer in its journal Journal of Labor Research.
Volume (Year): 31 (2010)
Issue (Month): 1 (March)
Contact details of provider:
Web page: http://www.springer.com/economics/journal/12122
Other versions of this item:
- Campolieti, Michele & Fang, Tony & Gunderson, Morley, 2009. "Labour Market Outcomes and Skills Acquisition of High-School Dropouts," CLSRN Working Papers clsrn_admin-2009-25, UBC Department of Economics, revised 15 Mar 2009.
- J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
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