Why do students leave school early in OECD countries? The role of regional labor markets and school policies

Abstract

AbstractThis paper examines the determinants of early school leaving (ESL) in a panel of 371 regions of OECD countries observed between 1998 and 2019. The empirical analysis includes both local factors previously emphasized by micro‐economic studies and national‐level factors such as education policies. We find that labor market opportunities for young people, as captured by the youth unemployment rate or the size of low‐skill sectors, can pull students out of school. Conversely, late access to a large number of vocational education tracks, high preprimary enrollment and continuous training for teachers are strongly and negatively correlated with ESL rates.