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A dynamic model of effort choice in high school

Olivier De Groote ()

No 19-1002, TSE Working Papers from Toulouse School of Economics (TSE)

Abstract: I estimate a dynamic discrete choice model of educational decisions to in-vestigate high school tracking policies in Flanders (Belgium). An ex-ante eval-uation of a policy that encourages underperforming students to switch to less academic programs reduces grade retention by a third and dropout by 11%. It decreases college enrollment but not graduation. The model is novel as it allows for counterfactual changes in unobserved effort, which increase with the policy change. This explains the better results compared to a pure dynamic discrete choice model in which performance is modeled as an exogenous state transition.

Keywords: high school curriculum; early tracking; dynamic discrete choice; CCP estimation (search for similar items in EconPapers)
JEL-codes: C61 I26 I28 (search for similar items in EconPapers)
Date: 2019-03-29, Revised 2022-10
New Economics Papers: this item is included in nep-dcm and nep-ure
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