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Labour Market Outcomes and Skills Acquisition of High-School Dropouts

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  • Campolieti, Michele
  • Fang, Tony
  • Gunderson, Morley

Abstract

We utilize an instrumental variable approach to analyse the effect that dropping out of high school has on 17 outcomes pertaining to wages, employment and subsequent skill acquisition for youths. Our analysis is based on the older cohort of the Youth in Transition Survey (YITS) for 2003, an ideal data set because it contains a rich array of outcome measures and their observable determinants as well as variables for instrumenting the dropout indicator (based on a link to the 1999 data). Our analysis indicates that dropouts have poorer wage and employment outcomes, and they do not make up for their lack of education through additional skill acquisition and training. The analysis thereby suggests that policies to curb dropping out could have both desirable efficiency effects (high returns) as well as distributional effects (high returns to otherwise more disadvantaged groups) and potential social spillover affects.

Suggested Citation

  • Campolieti, Michele & Fang, Tony & Gunderson, Morley, 2009. "Labour Market Outcomes and Skills Acquisition of High-School Dropouts," CLSSRN working papers clsrn_admin-2009-25, Vancouver School of Economics, revised 15 Mar 2009.
  • Handle: RePEc:ubc:clssrn:clsrn_admin-2009-25
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    Cited by:

    1. Kristine Simson, 2015. "Explaining upper secondary school dropout: new evidence on the role of local labor markets," Empirical Economics, Springer, vol. 48(4), pages 1419-1444, June.
    2. Emanuelle Bourbeau & Pierre Lefebvre & Philip Merrigan, 2011. "Provincial Returns to Education for 21 to 35 year-olds: Results from the 1991-2006 Canadian Analytic Censuses Files," Cahiers de recherche 1106, CIRPEE.
    3. Hernæs, Øystein & Markussen, Simen & Røed, Knut, 2017. "Can welfare conditionality combat high school dropout?," Labour Economics, Elsevier, vol. 48(C), pages 144-156.
    4. Marcotte, Dave E., 2013. "High school dropout and teen childbearing," Economics of Education Review, Elsevier, vol. 34(C), pages 258-268.
    5. Pierre Lefebvre & Philip Merrigan, 2010. "Labour Outcomes of Graduates and Dropouts of High School and Post-secondary Education: Evidence for Canadian 24- to 26-year-olds in 2005," Cahiers de recherche 1045, CIRPEE.

    More about this item

    Keywords

    Education; Training; Youth; Labour Market Outcomes;

    JEL classification:

    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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