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 askilled workforce is a key element of economic development and growth.When accounting for endogeneity, we find that secondary school dropout decreases the probability ofbeing employed in non-elementary occupations, suggesting that unskilled workers fail to meet the increasingdemand for a skilled workforce. Secondary school dropout, indeed, hinders the accumulation of adequatelevels 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 secondarylevel to avoid future under-education problems to promote a skilled workforce and encourage economicdevelopment and growth in the long run.
|Number of pages||21|
|Journal||Journal of Policy Modeling|
|Publication status||Published - 2019|
- Developing countries
- School dropout
- Work outcomes