Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/207386
Authors: 
Albæk, Karsten
Asplund, Rita
Barth, Erling
Lindahl, Lena
Strom, Marte
Vanhala, Pekka
Year of Publication: 
2019
Series/Report no.: 
IZA Discussion Papers No. 12560
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
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.
Subjects: 
upper secondary schooling
dropouts
NEET rates
JEL: 
I21
J24
J64
Document Type: 
Working Paper

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