1 Centre for Research in Integration, Education, Qualifications and Marginalization (CIM), Aarhus School of Business, Aarhus BSS, Aarhus University2 Department of Economics, Aarhus School of Business, Aarhus BSS, Aarhus University3 unknown
In continental Europe, high school graduates often interrupt their educational career before entering further education. This behavior incurs substantial cost on the youths and on society in particular. The focus of this paper is the choice between school and joining the labor force, which is faced by youths after high school graduation. It is assumed that the decision is taken year by year, and it is analyzed in a discrete choice dynamic programming model. In this forward-looking behavioral model, it is shown that a small bonus would remove interruptions of the educational careers just after high school.