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This paper examines how a reduction in the cost of college for undocumented students affects college enrollment and adolescent risky behaviors. Prior to 2001, undocumented students in the United States faced high out-of-state tuition costs at public colleges and universities. From 2001 to 2014, twenty-one states passed in-state tuition policies, reducing the average cost of college by more than half for these students. To the extent that teens are forward-looking and aware that lower tuition increases the likelihood of attending college, this price reduction should decrease the incidence of risky behavior during adolescence among the undocumented. Exploiting the variation in timing of in-state tuition policies across states and using Mexican foreign-born non-citizenship as a proxy for undocumented status, I find that these policies increase college enrollment by about 1.2 percentage points (12% of the sample mean), decrease high school dropout incidence by about 5 percentage points for female youth (27% of the sample mean), and decrease the likelihood of first birth before age 20 by 2 percentage points (9% of the sample mean).

Without a school degree, students can have difficulty in the labour market. To improve the lives of upper-secondary school dropouts, German states instituted a school reform that awarded an interim degree to high-track students upon completion of Grade 9. Using retrospective spell data on school careers from the National Educational Panel Study (NEPS), our difference-in-differences approach exploits the staggered implementation of this reform between 1965 and 1996. As intended, the reform reduced downgrading to lower school tracks. Surprisingly, it also increased successful high-track completion, arguably by reducing the perceived risk of trying longer to succeed in the high-track school.

School dropout is an important social and economic problem. This paper investigates the effect of an intensive coaching program aimed at reducing school dropout rates among students aged 16–20. Students received support and guidance with their study activities, personal problems and internships in firms. The coaching program lasted one or two years. Students were randomly assigned to the coaching program. We find that one year of coaching reduced school dropout rates by more than 40% from 17 to 10 percentage points. The second year of coaching further reduced school dropout by 1 percentage point. The program is most effective for students with a high ex-ante probability of dropping out, such as students no longer obliged to be in formal education, male students, and students not living with both parents. Cost-benefit analysis suggests that one year of coaching is likely to yield a net social gain.

Understanding the relationship between high school dropout and teen childbearing is complicated because both are affected by a variety of difficult to control factors. In this paper, I use panel data on aggregate dropout and fertility rates by age for all fifty states to develop insight by instrumenting for dropout using information on state policies on mandatory high school graduation exams. I then make use of these exit exam instruments in tandem with an instrument used previously in the literature to identify the impact of education on various outcomes: Compulsory schooling laws. Because these instruments operate at different margins, comparing effects provides insight into whether local average treatment effects are informative about average treatment effects relevant for a broader population than those complying with either instrument. The findings suggest that the elasticity of teen pregnancy with respect to high school dropout is 0.082 overall, with larger effects for black teens.

A straightforward way to prevent students from leaving education without a higher secondary diploma is increasing the compulsory education age. The idea is that, by staying longer in school, more students eventually obtain a higher secondary diploma. This paper examines the impact of a one-year increase in compulsory school-age on dropping out of secondary education by a difference-in-differences analysis. For this, we exploit a recent compulsory education policy reform in the Netherlands. After controlling for confounding factors and observable covariates, we find that the one year increase in compulsory school-age reduces dropout by 2.5 percentage points. The effect, however, is entirely situated in the group non-liable to the policy reform. We observe that native Dutch vocational students, mostly without retention in grade, but also without a higher secondary diploma at hand, more often left school in the immediate period before the policy reform. Given the economic revival at that time, this may reflect anticipation of labor market opportunities.

This paper explores the relationship between adolescent marijuana use and school attendance. Data were pooled from the 1997 and 1998 National Household Surveys on Drug Abuse to form a sample of 15 168 adolescents, aged 12–18 years, who had not yet complete high school. The analysis determined the role of marijuana use in adolescent school dropout and, conditional on being enrolled, estimated the number of days truant. The potential endogeneity of marijuana use was tested in all specifications. The results indicate that any marijuana use was positively associated with school dropout and truancy in all models. However, when chronic marijuana use (weekly or more frequent) was distinguished from non-chronic marijuana use (less frequent than weekly), chronic marijuana use was found to be the dominant factor in these relationships. The results have important implications for educators, substance abuse treatment providers, and policymakers.

It is widely recognized that high school dropouts, or early school leavers, often experience difficulty in making the transition from school to productive activities in adulthood, particularly post-school education, training, and employment. This study examines the experiences of high school dropouts from the United States and Australia in the first two years beyond high school. Unlike most studies of school dropouts, wc define a school dropout as any student who ever quit high school. By defining school dropouts in this way, we are able to examine not only which students quit high school, but which ones ultimately return and complete high school by earning a regular high school diploma or a high school equivalency. In the United States, at least, a high proportion of high school dropouts ultimately complete secondary school. We go on to compare the post-school education, training and employment experiences of school dropouts who complete high school with those who do not complete high school as well as with high school graduates who never quit school. Our analysis reveals substantial differences in the post-school education and employment experiences of these groups, with school dropouts experiencing much longer periods where they are neither employed nor in post-school education or training. It also reveals differences in the experiences of dropouts in the US compared to those in Australia, with dropouts in Australia more likely to participate in post-school education and training and more likely to settle into productive employment within the first two years of high school. This suggests that dropouts in the US are at a relatively larger disadvantage compared to high school graduates in Australia.

Mental illness is known to impose substantial direct costs on the ill. In this paper, we examine an indirect cost of mental illness. We investigate the effect of parents’ mental illnesses on the schooling of their children. Using data from the National Comorbidity Survey, we find that parents’ mental illnesses increase the probability of high school dropout of children, though these effects differ markedly with disease. We also find that parental mental illness has more consistently negative effects on girls than on boys. These findings indicate that parental mental illness can have a powerful impact on children’s schooling and subsequently on their adult lives. The larger impact on girls’ schooling compounds the greater earnings and employment losses due to mental illness borne by adult women. Our results suggest that policies designed to mitigate the effects of parental mental illness on children’s schooling attainment are potentially efficient uses of society’s resources.

The purpose of this study is to investigate the wage consequences of leaving high school prior to graduation. The dropout process is modeled as interdependent events involving the dropout decision itself and expected wage offers. Since selectivity biases may occur in such models, our empirical analysis permits adjustment for any such biases. Our empirical results provide support for the existence of a self-selection bias in the initial work experiences following high school. We also find that wages for dropouts progressively decline in subsequent years relative to high-school graduates.

The rationale for programs to reduce the high school dropout rate rests mainly on evidence that high school graduates are more successful than dropouts in the labor market. However, both high school completion and labor market success are to some extent results of prior characteristics. This paper estimates the effect of a high school diploma itself on success in the labor market, over and above the effects of prior characteristics, of which some are measured and some are not. Results indicate that differences in unemployment and wages between teenagers with and without high school diplomas are mainly not attributable to differences in measured prior characteristics.