Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/232477 
Year of Publication: 
2021
Series/Report no.: 
CESifo Working Paper No. 8880
Publisher: 
Center for Economic Studies and Ifo Institute (CESifo), Munich
Abstract: 
Frequent non-completion in optional education can be e¢ cient if dropouts optimally exercise an option rationally foreseen by previous enrollment choices. This paper shows that in educational opportunities and groups of students where enrollment resolves more pronounced individual uncertainty both enrollment and dropout are higher, with ambiguous degree completion e¤ects, and educational outcomes are unambiguously better in expectation and on average.
Subjects: 
option value
higher education
JEL: 
I22
I28
Document Type: 
Working Paper
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