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Schools, Ability, and the Socioeconomic Gradient in Education Choices

  • Torberg Falch
  • Bjarne Strom

This paper provides evidence on the socioeconomic gradient in dropout and progression in upper secondary education in Norway. Using a rich data set covering all students transferring from compulsory education to upper secondary education in 2002, we find that student achievement at the end of compulsory school is the main predictor of dropout and delayed progression. The socioeconomic gradient is sensitive to the inclusion of prior achievement in the model. We find that the gradient is modest and non-linear, and related to dropout behavior and not grade repetition. The results are remarkably robust to controlling for a full set of school fixed effects.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2011/wp-cesifo-2011-01/cesifo1_wp3313.pdf
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3313.

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Date of creation: 2011
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Handle: RePEc:ces:ceswps:_3313
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  1. Gary Solon & Marianne E. Page & Greg J. Duncan, 2000. "Correlations Between Neighboring Children In Their Subsequent Educational Attainment," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 383-392, August.
  2. Lena Lindahl, 2011. "A comparison of family and neighborhood effects on grades, test scores, educational attainment and income—evidence from Sweden," Journal of Economic Inequality, Springer, vol. 9(2), pages 207-226, June.
  3. Flavio Cunha & James J. Heckman & Susanne M. Schennach, 2010. "Estimating the Technology of Cognitive and Noncognitive Skill Formation," Econometrica, Econometric Society, vol. 78(3), pages 883-931, 05.
  4. Belley, Phillippe & Lochner, Lance, 2009. "The Changing Role of Family Income and Ability in Determining Educational Achievement," CLSSRN working papers clsrn_admin-2009-9, Vancouver School of Economics, revised 02 Feb 2009.
  5. Foley, Kelly & Gallipoli, Giovanni & Green, David A., 2010. "Ability, Parental Valuation of Education and the High School Dropout Decision," CLSSRN working papers clsrn_admin-2010-14, Vancouver School of Economics, revised 30 Apr 2010.
  6. Maani, Sholeh A. & Kalb, Guyonne, 2007. "Academic performance, childhood economic resources, and the choice to leave school at age 16," Economics of Education Review, Elsevier, vol. 26(3), pages 361-374, June.
  7. Flavio Cunha & James J. Heckman & Lance Lochner & Dimitriy V. Masterov, 2005. "Interpreting the Evidence on Life Cycle Skill Formation," NBER Working Papers 11331, National Bureau of Economic Research, Inc.
  8. Patricia Rice, 1999. "The impact of local labour markets on investment in further education: Evidence from the England and Wales youth cohort studies," Journal of Population Economics, Springer, vol. 12(2), pages 287-312.
  9. Petra E. Todd & Kenneth I. Wolpin, 2003. "On The Specification and Estimation of The Production Function for Cognitive Achievement," Economic Journal, Royal Economic Society, vol. 113(485), pages F3-F33, February.
  10. Flavio Cunha & James J. Heckman, 2010. "Investing in Our Young People," NBER Working Papers 16201, National Bureau of Economic Research, Inc.
  11. Raaum, Oddbjørn & Salvanes, Kjell G. & Sørensen, Erik Ø., 2003. "The Neighbourhood Is Not What It Used to Be," IZA Discussion Papers 952, Institute for the Study of Labor (IZA).
  12. Traag Tanja & Velden Rolf K.W. van der, 2008. "Early school-leaving in the Netherlands," ROA Research Memorandum 003, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  13. Aakvik, Arild & Salvanes, Kjell G. & Vaage, Kjell, 2010. "Measuring heterogeneity in the returns to education using an education reform," European Economic Review, Elsevier, vol. 54(4), pages 483-500, May.
  14. Falch, Torberg & Strom, Bjarne, 2005. "Contents continuedTeacher turnover and non-pecuniary factors," Economic Modelling, Elsevier, vol. 22(4), pages 758-758, July.
  15. 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.
  16. Pedro Carneiro & James J. Heckman, 2002. "The Evidence on Credit Constraints in Post--secondary Schooling," Economic Journal, Royal Economic Society, vol. 112(482), pages 705-734, October.
  17. Murnane, Richard J & Maynard, Rebecca A & Ohls, James C, 1981. "Home Resources and Children's Achievement," The Review of Economics and Statistics, MIT Press, vol. 63(3), pages 369-77, August.
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  19. Steve Bradley & Pam Lenton, 2007. "Dropping out of post-compulsory education in the UK: an analysis of determinants and outcomes," Journal of Population Economics, Springer, vol. 20(2), pages 299-328, April.
  20. Trostel, Philip & Walker, Ian & Woolley, Paul, 2002. "Estimates of the economic return to schooling for 28 countries," Labour Economics, Elsevier, vol. 9(1), pages 1-16, February.
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