Sheila Grace M. Bangquiao and Regina P. Galigao (Authors)
Abstract
This paper explores the economic consequences of school dropouts in terms of human capital and national productivity. By studying the experiences of school graduates, it becomes clear that they often face limited job opportunities early in their adulthood and frequently find themselves in low-skilled and informal work due to inadequate qualifications. The effect of dropping out is directly related to high unemployment, reduced income, and increased demand for government social assistance, which also adds pressure on public spending. The consequences of decreased labor productivity and workforce competence, which are directly related to educational neglect, are assessed in the report. Exploring the environmental and social factors behind school dropout reveals that environmental impact is closely tied to long-term economic outcomes. Taking deliberate steps to manage school dropout rates includes providing instruction in vocational education and skills development programs that help more children enter college, secure effective employment, and develop the skills they will need as they gain employment. Effective management of school dropouts can help create capable, innovative workforces that can sustain and drive lasting progress for their country.
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Keywords: School dropouts, human capital, informal work, less skilled workforce, socioeconomic factors, vocational education