Labour Market Outcomes and Skill Acquisition of High-School Dropouts |
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| Authors: | Michele Campolieti Tony Fang Morley Gunderson |
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| Institution: | (1) Department of Management (Scarborough Campus), Centre for Industrial Relations and Human Resources, University of Toronto, Toronto, ON, Canada;(2) York University School of Administrative Studies, York University, Toronto, ON, Canada;(3) CIBC Chair of Youth Employment, Centre for Industrial Relations and Human Resources, Department of Economics, School of Public Policy and Governance, Centre for International Studies, Institute for Human Development, Life Course and Aging, University of Toronto, Toronto, ON, Canada;; |
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| Abstract: | We estimate the effect that dropping out of high school has on 8 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 characteristics on individuals when they are in high school
and a few years later. 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 effects. |
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