This paper analyzes the impact of secondary school dropout on the work outcomes of young people in ten developing countries. Understanding such a phenomenon is important because it may affect work prospects, exacerbate income inequality and determine macroeconomic lasting effects given that the formation of a skilled workforce is a key element of economic development and growth. When accounting for endogeneity, we find that secondary school dropout decreases the probability of being employed in non-elementary occupations, suggesting that unskilled workers fail to meet the increasing demand for a skilled workforce. Secondary school dropout, indeed, hinders the accumulation of adequate levels of human capital and anticipates entry into the unskilled labor market. Thus, policy-makers should aim at the extension and efficacy of compulsory education to the secondary level to avoid future under-education problems to promote a skilled workforce and encourage economic development and growth in the long run. © 2018 The Society for Policy Modeling

Secondary school dropout and work outcomes in ten developing countries

Sciulli Dario;
2019

Abstract

This paper analyzes the impact of secondary school dropout on the work outcomes of young people in ten developing countries. Understanding such a phenomenon is important because it may affect work prospects, exacerbate income inequality and determine macroeconomic lasting effects given that the formation of a skilled workforce is a key element of economic development and growth. When accounting for endogeneity, we find that secondary school dropout decreases the probability of being employed in non-elementary occupations, suggesting that unskilled workers fail to meet the increasing demand for a skilled workforce. Secondary school dropout, indeed, hinders the accumulation of adequate levels of human capital and anticipates entry into the unskilled labor market. Thus, policy-makers should aim at the extension and efficacy of compulsory education to the secondary level to avoid future under-education problems to promote a skilled workforce and encourage economic development and growth in the long run. © 2018 The Society for Policy Modeling
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11564/702157
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