Template-type: ReDIF-Paper 1.0
Author-Name: Bertola, Giuseppe     
Author-Email: giuseppe.bertola@unito.it
Author-Workplace-Name: University of Turin
Author-Workplace-Homepage: http://www.est.unito.it/
Title: University Dropout Problems and Solutions.
Abstract: High dropout rates are often thought to signal ine¢ cient education, but students
can drop out of optional higher education only if they previously chose to enroll.
This paper shows that dropout is more likely when higher uncertainty increases the
probability of news that o¤set an expectation at enrollment that completion would
be better than drop out. Higher uncertainty also increases the value of the option
to drop out, so opportunities to enroll and possibly drop out are more valuable ex
ante and average educational outcomes are better ex post for degree programs and
groups of students with higher uncertainty and e¢ ciently more frequent dropout.
Poor information at enrolment, liquidity constraints, and other imperfections can
also explain high dropout rates, but attempts to remedy dropout symptoms rather
than their underlying causes can introduce new ine¢ ciencies.
Length: pages 35
Creation-Date: 2022-09
File-URL: https://www.est.unito.it/do/home.pl/Download?doc=/allegati/wp2022dip/wp_14_2022.pdf
File-Format: Application/PDF
Handle: RePEc:uto:dipeco:202214