Better late than never? How late completion affects the early careers of dropouts / Karsten Albæk (Danish National Centre for Social Research), Rita Asplund (Research Institute of the Finnish Economy), Erling Barth (Institute for Social Research, Oslo and IZA), Lena Lindahl (Swedish Institute for Social Research and IZA), Marte Strøm (Institute for Social Research, Oslo), Pekka Vanhala (Research Institute of the Finnish Economy) ; IZA Institute of Labor Economics
VerfasserAlbæk, Karsten ; Asplund, Rita ; Barth, Erling ; Lindahl, Lena ; Strøm, Marte ; Vanhala, Pekka
KörperschaftForschungsinstitut zur Zukunft der Arbeit
ErschienenBonn, Germany : IZA Institute of Labor Economics, August 2019
Elektronische Ressource
Umfang1 Online-Ressource (39 Seiten) : Diagramme
SerieDiscussion paper ; no. 12560
 Das Dokument ist öffentlich zugänglich im Rahmen des deutschen Urheberrechts.
Better late than never? How late completion affects the early careers of dropouts [2.1 mb]
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Across the OECD countries, dropouts from upper secondary schooling fare worse in the labor market, with higher NEET rates more spells of unemployment and lower earnings. Among the dropouts, there are however significant shares who complete at a later age. In this paper, we thus ask the question: Does it pay for young adults who do not complete upper secondary schooling by the age of 21, to do so at some point during the subsequent 7 years, that is, before turning 28? In all four Nordic countries under scrutiny, we find that late completion lowers the probability of being outside employment, education or training (NEET) at age 28. Moreover, the exact age of completion does not seem to matter. Our estimates are robust to the inclusion of extensive controls for socioeconomic background and early schooling paths, and similar to the ones produced by event history analysis with individual fixed effects. This indicates that late completion of upper secondary schooling plays an important role for the labor market inclusion of young dropouts.