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ERIC Number: ED559628
Record Type: Non-Journal
Publication Date: 2014-Jun
Pages: 41
Abstractor: ERIC
How Arizona's Dropout Crisis Affects Communities, Creates Economic Losses for the State of Arizona
One-in-five of Arizona's youth did not complete high school and a similarly large proportion of the state's youth is disconnected from either work or education. These youth face higher risks of unemployment and economic insecurity and are more reliant on government supports. This situation, which fails to ensure that the state's youth are adequately prepared for adulthood creates both social and fiscal losses. This report calculates the social and fiscal losses for high school dropouts and disconnected youth (those not in work or school/college). The social loss reflects lost earnings, higher criminal activity, poorer health status, higher reliance on government programs, as well as productivity losses and tax distortions. The fiscal loss reflects lost taxes and increased government spending on crime, health, and welfare; this loss is split between the federal government and Arizona state/local governments. The losses are estimated for the state of Arizona and for selected localities within Arizona. The economic framework used to model these losses are detailed in Appendix A, and calculations for each locality are provided in Appendix B. An economic model based on national research evidence and Arizona-specific data are used to calculate these losses. The model creates lifetime economic profiles for dropouts in comparison to high school graduates and for disconnected youth in comparison to other youth. These profiles are expressed as present values at age 18 (dropouts) and age 20 (disconnected youth) in 2013 dollars and adjusted for the price level in Arizona. Details outlining the economic framework used to model the losses are contained in the appendix. Policy implications of having large proportions of youth who have neither completed high school or become involved in the labor market are considered.
WestEd. 730 Harrison Street, San Francisco, CA 94107-1242. Tel: 877-493-7833; Tel: 415-565-3000; Fax: 415-565-3012; Web site:
Publication Type: Reports - Research
Education Level: High Schools; Secondary Education
Audience: Policymakers
Language: English
Sponsor: Helios Education Foundation
Authoring Institution: WestEd, Arizona Mayors Education Roundtable
Identifiers - Location: Arizona