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Out of school and into trouble? : labor market impacts of decreasing the school leaving age

Adamecz, Anna and Prinz, Dániel and Vujić, Suncica and Szabó-Morvai, Ágnes (2025) Out of school and into trouble? : labor market impacts of decreasing the school leaving age. IZA Discussion Papers (17844). IZA Institute of Labor Economics, Bonn.

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Abstract

This paper investigates the labor market impacts of a reform that universally lowered the school leaving age from 18 to 16 in Hungary. Using a difference-in-cross-cohort-comparisons approach and linked individual education-employment administrative panel data, we find that the policy led to an increase in the likelihood of dropping out from school and inactivity among individuals aged 16 to 18 but no corresponding increase in employment. Dropouts who were employed predominantly worked in low-skilled occupations. These effects were more pronounced among those from lower socioeconomic status, exacerbating existing inequalities. Our results suggest that the decrease in the school leaving age had adverse effects on school to work transition and did not yield the expected improvements in labor market integration.

Item Type: Book
Uncontrolled Keywords: education reform, employment, school leaving age
Subjects: H Social Sciences / társadalomtudományok > HD Industries. Land use. Labor / ipar, földhasználat, munkaügy > HD3 Labor / munkaügy
H Social Sciences / társadalomtudományok > HM Sociology / társadalomkutatás
SWORD Depositor: MTMT SWORD
Depositing User: MTMT SWORD
Date Deposited: 17 Apr 2025 14:26
Last Modified: 17 Apr 2025 14:26
URI: https://real.mtak.hu/id/eprint/217926

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