The determinants of school dropout an analysis from the students' perspective

Abstract

In this paper we study the determinants of school dropout after compulsory secondary education. We explore how students’ perceptions and preferences (subjective variables) affect students’ decisions. We analyze data collected directly from students when they had to take a decision concerning their education in their last year of compulsory education (at the age of 16). Our results confirm those obtained by other authors in Spain, that is, family background and labor market conditions affect students’ decisions. However, we go one step further and we show that students’ inter-temporal preferences as well as the quality of the information received by students, regarding their alternatives after completing compulsory education, explain students’ decisions. Additionally, we find significant differences among students depending on the type of school they attend (public versus private schools).