The early employment and further education experiences of high school dropouts: a comparative study of the United States and Australia

Abstract

It is widely recognized that high school dropouts, or early school leavers, often experience difficulty in making the transition from school to productive activities in adulthood, particularly post-school education, training, and employment. This study examines the experiences of high school dropouts from the United States and Australia in the first two years beyond high school. Unlike most studies of school dropouts, wc define a school dropout as any student who ever quit high school. By defining school dropouts in this way, we are able to examine not only which students quit high school, but which ones ultimately return and complete high school by earning a regular high school diploma or a high school equivalency. In the United States, at least, a high proportion of high school dropouts ultimately complete secondary school. We go on to compare the post-school education, training and employment experiences of school dropouts who complete high school with those who do not complete high school as well as with high school graduates who never quit school. Our analysis reveals substantial differences in the post-school education and employment experiences of these groups, with school dropouts experiencing much longer periods where they are neither employed nor in post-school education or training. It also reveals differences in the experiences of dropouts in the US compared to those in Australia, with dropouts in Australia more likely to participate in post-school education and training and more likely to settle into productive employment within the first two years of high school. This suggests that dropouts in the US are at a relatively larger disadvantage compared to high school graduates in Australia.

Introduction

There is widespread interest among all industrialized countries in improving the transition from school to working life for young people (OECD, 1996). Because the majority of young people in most industrialized countries now complete secondary school, this interest has focused particularly on the transition from secondary school to post-high school work and education. As the rate of secondary school completion has grown, so too has concern over that group of young people who fail to complete high school. It is widely recognized that high school dropouts, or early school leavers, experience the most difficulty in making the transition from school to productive activities in adulthoodmpost-school education, training, and employment. For example, the earnings of male high school dropouts have been falling in the US relative to the earnings of more educated workers for the last 30 years.¹

One specific concern is how to create viable educational options for dropouts once they leave high school. The US has long had a mechanism for dropouts to earn a high school equivalency through a national examination known as the General Educational Development (GED) test administered by the American Council of Education (1999). The GED is a series of five subject exams in which, beginning in 1997, test-takers had to exceed the performance of at least 67% of traditional graduating high school seniors in order to pass the test. However, states establish their own criteria for using the GED results to issue a high school equivalency certificate in their state.² In 1999, almost 268,000 18–24 year olds received a GED in the US, an increase of 20% since 1990 (Kaufman, Kwon, Klein, & Chapman, 2000, Table C3). But as the number of young people earning a high school equivalency has increased, so too has a debate about its economic value. Some scholars have suggested that the GED does not provide the same economic rewards as a regular high school diploma, while other scholars argue that GED holders fare better in the labor market than other dropouts groups (Cameron and Heckman, 1993, Murnane, Willett and Boudett, 1995, Murnane, Willett and Boudett, 1997, Murnane, Willett and Boudett, 1999, Murnane, Willett and Tyler, 2000, Tyler, Murnane and Willett, 2000).

In Australia, there is no equivalent mechanism to the GED. Dropouts can complete a Year 12 certificate by either returning to high school, a practice that is not common, or, depending on the state, entering a Technical and Further Education (TAFE) College. In recent years, the Federal government has implemented major changes to income support arrangements to encourage dropouts to return to school or to participate in full-time education and training. Several measures were introduced including the requirement that young people under 18 years generally be in school or full-time education or training to receive financial assistance. These changes were based on the belief that there are substantial economic benefits to completion of Year 12 or similar forms of education and training.

This study examines the experiences of high school dropouts from the United States and Australia in the first two years beyond high school.³ Unlike most studies of school dropouts, we define a school dropout as any student who ever quit high school. By defining school dropouts in this way, we are able to examine not only which students quit high school, but also which ones ultimately return and complete high school either by earning a regular high school diploma or a high school equivalency certificate. In the United States, at least, a high proportion of high school dropouts ultimately complete secondary school. We go on to compare the post-school education, training and employment experiences of school dropouts who complete high school with those who do not complete high school as well as with high school graduates who never quit school. Our analysis reveals substantial differences in the post-school education and employment experiences of these groups, with school dropouts experiencing much longer periods where they are neither employed nor in post-school education or training.