This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Dropping out and revising educational decisions: Evidence from vocational education

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Donata Bessey () (Institute for Strategy and Business Economics, University of Zurich)
Uschi Backes-Gellner () (Institute for Strategy and Business Economics, University of Zurich)

Additional information is available for the following registered author(s):

Abstract

Previous research on educational decisions has almost exclusively focused on individual decisions to start a particular education. At the same time, the decision to revise an educational choice has hardly been analyzed, unless it is the decision to drop out. However, dropping out is only one possibility of revising an educational choice. In this paper, we distinguish three different educational revisions, namely, dropping out, changing and upgrading. We analyze the determinants of these three different choices in apprenticeship training using hazard rate models for the empirical analysis. In a first research step, we carry out a simple hazard rate estimation of the decision to drop out vs. staying in the educational system because dropping out is associated with considerable risks, unlike the other two choices. Our most important finding here is that dropout decisions seem to be driven to a considerable amount by financial considerations such as the opportunity cost of apprenticeship training or financial distress, determinants that could rarely be analyzed in previous research due to lack of information. In a competing risks specification of the different educational choices, we find additional regional-level impact factors and remarkable differences in the determinants of the different choices. Less favorable local labor market conditions lead to lower hazards of staying within the educational system. These results underline the importance of distinguishing between the different choices instead of focusing exclusively on dropping out as one possible choice.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.isu.uzh.ch/leadinghouse/WorkingPapers/0040_lhwpaper.pdf
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by University of Zurich, Institute for Strategy and Business Economics (ISU) in its series Economics of Education Working Paper Series with number 0040.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 32 pages
Date of creation: Dec 2008
Date of revision:
Handle: RePEc:iso:educat:0040

Contact details of provider:
Postal: Plattenstrasse 14, CH-8032 Z�rich
Phone: ++41 1 634 29 27
Fax: ++41 1 634 43 48
Email:
Web page: http://www.isu.uzh.ch
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Jens Mohrenweiser).

Related research
Keywords: Apprenticeship training; human capital; regional labor markets;

Find related papers by JEL classification:
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Private Pensions

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Rainer Winkelmann, 1996. "Employment prospects and skill acquisition of apprenticeship-trained workers in Germany," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 49(4), pages 658-672, July.
  2. James J. Heckman & Paul A. LaFontaine, 2007. "The American High School Graduation Rate: Trends and Levels," IZA Discussion Papers 3216, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March. [Downloadable!] (restricted)
  4. Abbring, Jaap H & van den Berg, Gerard J, 2007. "The Unobserved Heterogeneity Distribution in Duration Analysis," CEPR Discussion Papers 6219, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  5. Oreopoulos, Philip, 2007. "Do dropouts drop out too soon? Wealth, health and happiness from compulsory schooling," Journal of Public Economics, Elsevier, vol. 91(11-12), pages 2213-2229, December. [Downloadable!] (restricted)
  6. Anh Ngoc Nguyen & Jim Taylor & Steve Bradley, 2006. "The Estimated Effect Of Catholic Schooling On Educational Outcomes Using Propensity Score Matching," Bulletin of Economic Research, Blackwell Publishing, vol. 58(4), pages 285-307, October. [Downloadable!] (restricted)
    Other versions:
  7. Eric Maurin & Theodora Xenogiani, 2007. "Demand for Education and Labor Market Outcomes: Lessons from the Abolition of Compulsory Conscription in France," Journal of Human Resources, University of Wisconsin Press, vol. 42(4). [Downloadable!] (restricted)
    Other versions:
  8. David Card & Thomas Lemieux, 2000. "Dropout and Enrollment Trends in the Post-War Period: What Went Wrong in the 1970s?," NBER Working Papers 7658, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  9. Narendranathan, W & Stewart, Mark B, 1993. "How Does the Benefit Effect Vary as Unemployment Spells Lengthen?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 8(4), pages 361-81, Oct.-Dec.. [Downloadable!] (restricted)
  10. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9. [Downloadable!] (restricted)
  11. Giorgio Barba Navaretti & Daniele Checchi & Alessandro Turrini, 2003. "Adjusting Labor Demand: Multinational Versus National Firms: A Cross-European Analysis," Journal of the European Economic Association, MIT Press, vol. 1(2-3), pages 708-719, 04/05. [Downloadable!] (restricted)
    Other versions:
  12. Roed, Knut & Zhang, Tao, 2005. "Unemployment duration and economic incentives--a quasi random-assignment approach," European Economic Review, Elsevier, vol. 49(7), pages 1799-1825, October. [Downloadable!] (restricted)
  13. Francesca Fabbri & Jonathan E. Haskel & Matthew J. Slaughter, 2003. "Does Nationality Of Ownership Matter For Labor Demands?," Journal of the European Economic Association, MIT Press, vol. 1(2-3), pages 698-707, 04/05. [Downloadable!] (restricted)
  14. Arulampalam, Wiji & Stewart, Mark B, 1995. "The Determinants of Individual Unemployment Durations in an Era of High Unemployment," Economic Journal, Royal Economic Society, vol. 105(429), pages 321-32, March. [Downloadable!] (restricted)
  15. Susan Dynarski, 2008. "Building the Stock of College-Educated Labor," Journal of Human Resources, University of Wisconsin Press, vol. 43(3), pages 576-610. [Downloadable!] (restricted)
    Other versions:
  16. Regina T. Riphahn, 2002. "Residential location and youth unemployment: The economic geography of school-to-work transitions," Journal of Population Economics, Springer, vol. 15(1), pages 115-135. [Downloadable!] (restricted)
    Other versions:
  17. Bishop, John H. & Mane, Ferran, 2001. "The impacts of minimum competency exam graduation requirements on high school graduation, college attendance and early labor market success," Labour Economics, Elsevier, vol. 8(2), pages 203-222, May. [Downloadable!] (restricted)
  18. Jenkins, Stephen P, 1995. "Easy Estimation Methods for Discrete-Time Duration Models," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(1), pages 129-38, February.
  19. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-90, October. [Downloadable!] (restricted)
    Other versions:
  20. David M. Cutler & Adriana Lleras-Muney, 2006. "Education and Health: Evaluating Theories and Evidence," NBER Working Papers 12352, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Full references

Statistics
Access and download statistics

Did you know? You can use IDEAS to provide links to papers and articles in your course syllabus.

This page was last updated on 2009-10-31.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.