The Work-to-School Transition: The Work-to-School Transition: Job Displacement and Skill Upgrading Among Young High School Dropouts

This paper examines how and why returning to education to attain a high school diploma combats earnings penalties due to negative employment shocks. High school dropout continues to be a problem, particularly as employment is increasingly skilled over time. Following a policy expanding a Norwegian vocational certification scheme, displaced workers certify their skills at significantly higher rates relative to those displaced pre-expansion. Increases in certification post-expansion significantly reduce income losses after job loss. Certifying skills fosters recovery among early career displaced workers through the retention of relevant industry-specific human capital, which increases job stability over 20 years later.

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