We examine the impact of high school graduation on the probability individuals from welfare backgrounds use welfare themselves. Our data consists of administrative educational records for grade 12 students in a Canadian province linked with their own and their parents' welfare records. We address potential endogeneity problems by: 1) controlling for ability using past test scores; 2) using an instrument for graduation based on school principal fixed effects; and 3) using a Heckman- Singer type unobserved heterogeneity estimator. Graduation would reduce welfare receipt of dropoutsby Ý to 3/4. Effects are larger for individuals from troubled family backgrounds and low income neighbourhoods.
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Paper provided by Institute for Fiscal Studies in its series IFS Working Papers with number
W04/14.
Length: 69 pp. Date of creation: Jun 2004 Date of revision: Handle: RePEc:ifs:ifsewp:04/14
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Find related papers by JEL classification: I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
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