Dropping out and revising educational decisions: Evidence from vocational education
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.
|Date of creation:||Dec 2008|
|Contact details of provider:|| Postal: Plattenstrasse 14, CH-8032 Zürich|
Phone: ++41 1 634 29 27
Fax: ++41 1 634 43 48
Web page: http://www.business.uzh.ch
More information through EDIRC
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.:
- 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.
- Muehlemann, Samuel & Wolter, Stefan C., 2007.
"Regional effects on employer-provided training: Evidence fromapprenticeship training in Switzerland,"
Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research,
Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(2/3), pages 135-147.
- Samuel Muehlemann & Stefan C. Wolter, 2006. "Regional Effects on Employer Provided Training: Evidence from Apprenticeship Training in Switzerland," CESifo Working Paper Series 1665, CESifo Group Munich.
- Samuel Muehlemann & Stefan C. Wolter, 2006. "Regional Effects on Employer Provided Training: Evidence from Apprenticeship Training in Switzerland," Economics of Education Working Paper Series 0001, University of Zurich, Department of Business Administration (IBW).
- Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 1-9.
- Tomas Korpi & Antje Mertens, 2003. "Training Systems and Labor Mobility: A Comparison between Germany and Sweden," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(4), pages 597-617, December.
- 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 129-138, February.
- Regina T. Riphahn, 2002. "Residential location and youth unemployment: The economic geography of school-to-work transitions," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(1), pages 115-135.
- Riphahn, Regina T., 1999. "Residential Location and Youth Unemployment: The Economic Geography of School-To-Work Transitions," IZA Discussion Papers 99, Institute for the Study of Labor (IZA).
- 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.
- Barba Navaretti, Giorgio & Checchi, Daniele & Turrini, Alessandro Antonio, 2003. "Adjusting Labour Demand: Multinational versus National Firms- A Cross-European Analysis," CEPR Discussion Papers 3751, C.E.P.R. Discussion Papers.
- 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.
- James J. Heckman & Paul A. LaFontaine, 2010. "The American High School Graduation Rate: Trends and Levels," The Review of Economics and Statistics, MIT Press, vol. 92(2), pages 244-262, May.
- James J. Heckman & Paul A. LaFontaine, 2007. "The American High School Graduation Rate: Trends and Levels," NBER Working Papers 13670, National Bureau of Economic Research, Inc.
- Heckman, James J. & LaFontaine, Paul A., 2007. "The American High School Graduation Rate: Trends and Levels," IZA Discussion Papers 3216, Institute for the Study of Labor (IZA).
- James J. Heckman & Paul A. LaFontaine, 2008. "The American High School Graduation Rate: Trends And Levels," Working Papers 200828, Geary Institute, University College Dublin.
- 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, Wiley Blackwell, vol. 58(4), pages 285-307, October.
- A N Nguyen & J Taylor & S Bradley, 2005. "The estimated effect of Catholic schooling on educational outcomes using propensity score matching," Working Papers 565730, Lancaster University Management School, Economics Department.
- 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.
- David M. Cutler & Adriana Lleras-Muney, 2006. "Education and Health: Evaluating Theories and Evidence," NBER Working Papers 12352, National Bureau of Economic Research, Inc.
- Rainer Winkelmann, 1996. "Employment Prospects and Skill Acquisition of Apprenticeship-Trained Workers in Germany," ILR Review, Cornell University, ILR School, vol. 49(4), pages 658-672, July.
- Jaap H. Abbring & Gerard J. Van Den Berg, 2007. "The unobserved heterogeneity distribution in duration analysis," Biometrika, Biometrika Trust, vol. 94(1), pages 87-99.
- Jaap H. Abbring & Gerard J. van den Berg, 2006. "The Unobserved Heterogeneity Distribution in Duration Analysis," Tinbergen Institute Discussion Papers 06-059/3, Tinbergen Institute.
- 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.
- Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-990, October.
- Thomas Sargent, "undated". "Matlab code for Jovanovic's matching model," QM&RBC Codes 24, Quantitative Macroeconomics & Real Business Cycles.
- 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.
- David Card & Thomas Lemieux, 2001. "Dropout and Enrollment Trends in the Postwar Period: What Went Wrong in the 1970s?," NBER Chapters,in: Risky Behavior among Youths: An Economic Analysis, pages 439-482 National Bureau of Economic Research, Inc.
- 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.
- 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 361-381, Oct.-Dec..
- Susan Dynarski, 2008. "Building the Stock of College-Educated Labor," Journal of Human Resources, University of Wisconsin Press, vol. 43(3), pages 576-610.
- Susan Dynarski, 2005. "Building the Stock of College-Educated Labor," NBER Working Papers 11604, National Bureau of Economic Research, Inc.
- Dynarski, Susan, 2005. "Building the Stock of College-Educated Labor," Working Paper Series rwp05-050, Harvard University, John F. Kennedy School of Government.
- 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.
- 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).
- Maurin, Eric & Xenogiani, Theodora, 2005. "Demand for Education and Labour Market Outcomes: Lessons from the Abolition of Compulsory Conscription in France," CEPR Discussion Papers 4946, C.E.P.R. Discussion Papers.
- Eric Maurin & Theodora Xenogiani, 2007. "Demand for Education and Lbour Market Outcomes: Lessons from the Abolition of Compulsory Conscription in France," Post-Print halshs-00754194, HAL.
- 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;European Society for Population Economics, vol. 20(2), pages 299-328, April.
- 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 321-332, March.
- Peter Dolton & Wilbert van der Klaauw, 1999. "The Turnover of Teachers: A Competing Risks Explanation," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 543-550, August. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:iso:educat:0040. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sara Brunner)
If references are entirely missing, you can add them using this form.