Arbeitspapier

Basic skills and the earnings of dropouts

This paper tests the extent to which the accumulation of basic cognitive skills, as measured by a post-schooling math test, matter for young dropouts entering today’s labor market. Based on a sample of dropouts who were age 16-18 when administered a math test in the late 1990s, estimates indicate that a standard deviation increase in the test score is associated with 6.5 percent higher average earnings over the first three years in the labor market. These results are the first direct evidence that young dropouts in today’s economy are not relegated to jobs where basic cognitive skills are not rewarded, and they stress the importance of skill acquisition for students who may eventually drop out.

Language
Englisch

Bibliographic citation
Series: Working Paper ; No. 2002-09

Classification
Wirtschaft
Education and Research Institutions: General
Education: Government Policy
Human Capital; Skills; Occupational Choice; Labor Productivity
Subject
Human Capital
Dropouts
Low-Skilled Workers
Returns to Skills
Abbrecher
Qualifikation
Lohn
Arbeitsmarkt
USA

Event
Geistige Schöpfung
(who)
Tyler, John H.
Event
Veröffentlichung
(who)
Brown University, Department of Economics
(where)
Providence, RI
(when)
2002

Handle
Last update
10.03.2025, 11:45 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Tyler, John H.
  • Brown University, Department of Economics

Time of origin

  • 2002

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