Page 358 - Štremfel, Urška, and Maša Vidmar (eds.). 2018. Early School Leaving: Contemporary European Perspectives. Ljubljana: Pedagoški inštitut.
P. 358
ear ly school leaving: contempor ary european perspectives

problem for contemporary (EU) society?”. After introducing the topic, the
article first presents the economic (fiscal) consequences of ESL, second, the
social consequences are described, third, different unresolved questions of
researching and understanding ESL as a problem of economic and social
development are mentioned, while the conclusion summarises the main
findings.

Methodology
This article draws on a review of theoretical and empirical evidence. To ad-
dress the article’s aims, we apply the following methods: (a) an analysis of
relevant literature and secondary sources. Here we conducted a literature
search of the scientific EBSCOhost, Web of Science and Google Scholar on-
line research databases. The main key words used in searching the relevant
scientific literature were: early school leaving, consequences, impact, effect,
social cohesion, social development, economic growth, economic compet-
itiveness, economic development; and (b) an analysis of EU-level formal
documents and legal sources (Council Resolutions, European Commission
Communications, Reports of Expert Networks).

ESL as an obstacle to economic development
Discussions on the economic consequences of ESL arise from general dis-
cussions on the importance of education (e.g. quality and attainment lev-
els of individuals) for economic development (e.g. Hanushek & Wößmann,
2010; OECD 2010). For example, it is estimated that in the OECD countries
each year of schooling is statistically significantly associated with a 0.30%
higher rate of economic growth (Psacharopoulos, 2007).

Studies concentrating on the economic consequences of ESL are most-
ly based on a calculation of the estimated costs (including lower tax rev-
enues and/or higher unemployment and welfare payments and/or higher
public health expenditures and/or higher police expenditures and/or high-
er criminal justice expenditure) per individual ESLer lifetime and by calcu-
lating the returns of an additional year of schooling. Taking into consider-
ation the number of ESLers and the differences between the target (ESLers)
and non-target group (non-ESLers), studies then calculate the aggregate

can limit employment opportunities and the earnings potential of ESLers, there-
by leading to lower income tax payments and an increased risk of needing social
benefits and participating in different welfare programmes (European Commission,
n.d.).

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