Occupational Constraints and Opportunities Faced by School Dropouts

Abstract

This study investigated the relation between building human capital of former dropouts and their occupational standing and the interaction effects with individual characteristics. By applying the growth curve model, this study highlighted the factors that lead high school dropouts to enhance their occupational standing. An increment in the work experience limitedly improved the occupational standing of dropout workers. The acquisition of a vocational certificate pushed dropout workers further toward higher occupational standing but engendered more benefits to female workers than to male workers. The benefit of a vocational certificate accrued to Whites, thereby increasing the racial disparities with Hispanics. The association between work experience and occupational standing did not depend on the demographic characteristics, indicating the presence of social constraints. Parental education level did not affect dropout workers in their acquisition of a higher occupational standing. Work experience was also not a mechanism for dropout workers to obtain better occupation and therefore, other policy interventions should be considered. Dropout workers need to be redirected toward a hidden credential, such as a vocational certificate instead of the General Educational Development test.