Secondary school dropout and work outcomes in ten developing countries

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.