The Labor Market Problems of Today's High School Dropouts.

Abstract

This article assesses the labor market behavior of young high school dropouts relying heavily on data from the Current Population Survey. About 3 of 8 unemployed people in America are aged 16-24. The high unemployment rates among youth reflect the problems often encountered by these new entrants to the job market. The youth facing the greatest difficulties are the 4 million high school dropouts. The number of recent dropouts has averaged about 700000 a year for the last 20 years although it was at its lowest level 562000 in 1986. The recent dropouts of 1986 were nearly equally divided among young men (53%) and young women (47%). In October 1986 the jobless rate for female dropouts aged 16-24 was 30.4% about 2 1/2 times the rate for women this age who had ended their education with a high school degree. In October 1986 >1 of 5 male dropouts were unemployed compared to 1 of 10 high school graduates. Among dropouts the jobless rate for blacks (44%) was much higher than that for whites (18%) and Hispanics (15%). In summary young high school dropouts face a difficult time in todays labor market. Unemployment rates are high especially among black dropouts. Only 1/2 of all female dropouts are in the labor force at any time and many of the young women have the additional responsibility of motherhood often without a spouse. A surprisingly small proportion of male dropouts are employed with many experiencing long periods of nonemployment. Data suggest that dropouts are less likely to achieve success in the labor market than are high school graduates. However while the importance of education cannot be overstated there are also differences in the family background and personal characteristics of dropouts and graduates that affect labor market success. Their differences cannot be overcome simply by obtaining a diploma. (authors modified)