Does Part-Time Work During Schooling Affect Post-Compulsory Dropout Rates?
Instrumental variables analysis of part-time work and school dropout in Indonesia using IFLS panel data.
Abstract. This paper studies whether working part-time during the compulsory schooling years affects a student’s decision to drop out of secondary education in Indonesia. Using data from the Indonesian Family Life Survey (IFLS), I exploit variation in local labour market conditions as an instrument for part-time work during schooling. The results suggest that part-time employment significantly raises the probability of dropping out after the mandatory schooling years, consistent with a model in which early work experience raises the opportunity cost of continuing education for low-income students.
Keywords: education · school dropout · child labour · Indonesia · instrumental variables
Data: Indonesian Family Life Survey (IFLS), waves 3–5.
Tools: Stata. Undergraduate capstone thesis, New York University Abu Dhabi, 2020.