Do Dropouts Drop Out Too Soon? International Evidence From Changes in School-Leaving Laws

摘要: This paper studies high school dropout behavior by estimating the long-run consequences to leaving early. I measure these using changes in minimum ages often introduced prevent dropping out and compare results across United States, Canada, Kingdom. Students compelled stay experience substantial gains lifetime wealth, health, other labor market activities for all three countries, hold up against a wide array of specification checks. estimate one year later increases present value income more than 10 times forgone earnings 2 maximum annual wage. The one-year cost attending would have be extremely large offset under model that views education as an investment. Other, sub-optimal, explanations why dropouts forgo benefits are considered.