Labor Market Effects on Dropping Out of High School: Variation by Gender, Race, and Employment Status

Abstract

It is known from previous research that the likelihood of dropping out is affected by a number of individual traits, including, among others, socioeconomic status (SES), race/ethnicity, gender, and employment status. It is also known that dropping out is contingent on a variety of school characteristics. What is less known about is how dropping out and the work—dropping out relationship are affected by larger social contexts such as the local labor market area (LMA). This research asks three questions. First, to what degree does the work—dropping out relationship vary by SES? Second, to what degree does a larger social context, in this case LMAs, affect the likelihood of dropping out? Third, are LMA effects contingent on, or vary by, the student’s individual traits such as SES, gender, race/ethnicity, and employment status? Findings from a series of hierarchical regression models provide answers, at least in part, to these questions. First, the relationship between adolescent employment and dropping out is contingent on the student’s SES. Second, LMAs directly affect a student’s likelihood of dropping out. Third, LMA effects vary substantially by student traits.