Hit and Run? Income Shocks and School Dropouts in Latin America
How do labor income shocks affect household investment in upper secondary and tertiary schooling? Using longitudinal data from 2005-15 for Argentina, Brazil, and Mexico, this paper explores the effect of a negative household income shock on the...
| Main Authors: | , , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/548991519135439746/Hit-and-run-income-shocks-and-school-dropouts-in-Latin-America http://hdl.handle.net/10986/29404 |
| Summary: | How do labor income shocks affect
household investment in upper secondary and tertiary
schooling? Using longitudinal data from 2005-15 for
Argentina, Brazil, and Mexico, this paper explores the
effect of a negative household income shock on the
enrollment status of youth ages 15 to 25. The findings
suggest that negative income shocks significantly increase
the likelihood that students in upper secondary and tertiary
school exit school in Argentina and Brazil, but not in
Mexico. For the three countries, the analysis finds evidence
that youth who drop out due to a household income shock have
worse employment outcomes than similar youth who exit school
without a household income shock. Differences in labor
markets and safety net programs likely play an important
role in the decision to exit school as well as the
employment outcomes of those who exit across these three countries. |
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