Sholeh A. Maani () (Department of Economics, The University of Auckland) Guyonne Kalb () (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)
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This paper uses a recent panel data set from New Zealand to examine the link between academic performance and the decision of teenagers to leave school. These choices have significant lifetime economic impacts, since early school leaving in many cases closes pathways to further education. We address the potential endogeneity and error correlation of academic performance and later school-leaving choices. The results show that schooling decisions largely represent personal choice, and that they are influenced by factors that are at work for a long period of time. Personal ability, parental education and income during early and later childhood years influence the demand for education, exerting their influence directly and through academic performance. These results point to the role that academic performance could play in breaking cycles of disadvantage.
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Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number
wp2003n01.
Length: 30 pages Date of creation: Jan 2003 Date of revision: Handle: RePEc:iae:iaewps:wp2003n01
Contact details of provider: Postal: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia Phone: +61 3 8344 2100 Fax: +61 3 8344 2111 Email: Web page: http://www.melbourneinstitute.com/ More information through EDIRC
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