Abstract
This study investigates whether state course graduation requirements (CGRs) affect high school dropout decisions. It uses aggregate data on dropout rates, individual data on dropout decisions from two time periods, and aggregate data on high school (attrition) completion rates over fifteen years. The results strongly suggest that state mandated minimum course requirements cause students to drop out of high school. The estimated effects imply that a standard deviation increase in CGRs would cause between 26,000 and 65,000 more individuals to drop out of school. These figures constitute an increase in the population of dropouts in 1990 of 3.0 to 7.4 percent.
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