Re-examining the impact of dropping out on criminal and labor outcomes in early adulthood

This paper shows that while high school dropouts fare far worse on average than otherwise similar high school completers in early adulthood outcomes such as success in the labor market and future criminal activity, there are important differences within this group of dropouts. Notably, those who feel “pulled” out of school (i.e., they say they dropped out of school to work or take care of family) do similarly with respect to labor market and criminal outcomes in their early twenties to individuals with similar pre-dropout characteristics who complete high school. It is only those who feel they are more “pushed” out of school (i.e., they say they drop out for other reasons including expulsion, poor grades, moving, and not liking school) who do substantially worse than otherwise similar high school completers. These results suggest that any detrimental impacts from dropping out of school arise primarily when the drop out does not have a plan for how to use his time after dropping out.

► This paper shows that while high school dropouts fare far worse on average than otherwise similar high school completers in later life outcomes such as success in the labor market and future criminal activity, there are important differences within this group of dropouts.
► Those who say they drop out for other more passive reasons (including expulsion, poor grades, moving, and not liking school) do substantially worse than otherwise similar high school completers.
► Those who say they dropped out of school to work or take care of family do similarly with respect to labor market and criminal outcomes in their early twenties to individuals with similar pre-dropout characteristics who complete high school.
► These results suggest that what is beneficial about keeping marginal students in school a little longer is not necessarily the academic learning that occurs, but rather the maintenance of softer skills such as punctuality, reliability, and respect for authority and rules—skills which can be maintained either through staying in school or through things like labor market work, but will depreciate when individuals become idle.