Do dropouts drop out too soon? Wealth, health and happiness from compulsory schooling

摘要: Abstract This paper uses compulsory schooling laws to evaluate high school dropout decisions. The main empirical result is that lifetime wealth increases by about 15% with an extra year of schooling. Students compelled stay in are also less likely report being poor health, unemployed, and unhappy. conclusion aversion alone unlikely explain why dropouts forgo substantial gains wealth. results more consistent the possibility adolescents ignore or heavily discount future consequences when deciding drop out school. If teenagers myopic, making offering incentives may help improve outcomes.