Economic Implications of a Dropout

South Carolina faces a potentially troublesome future with the rate of high school dropouts in the state, particularly in the current economy. The implications of this trend not only influence the immediate earning potential of a dropout, but reach far into the future with implications for public welfare.

The Bureau of Labor Statistics has shown that high school dropouts earn an average under $20,000 annually (female dropouts age 25-34 earn less than $15,000) compared to their high school graduate counterparts who earn $28,800. The average annual income for an adult with a bachelor’s degree jumps to $46,300. Over the course of a thirty year working career, a college graduate with a bachelor’s degree will earn almost $750,000 (with no adjustments for inflation) more than a high school dropout.

The differences in the income levels between the college graduate and high school dropout are significant, particularly when considering the impact of the lessened tax rates on public services and infrastructure.

High School Dropouts: A Costly Legacy

The continued trend of high school dropouts in our public schools has placed South Carolina and the United States, in a precarious position for it’s policy in dealing with what will be a costly legacy.

There are a number of organizations that examine and report on dropout rates. The most recent data analysis indicates the cohort graduation rate of the class of 2007 was 55.87 percent. For 2006 the percentage was 50.43 and for 2005–48.71. Between 2004 and 2007, South Carolina has averaged graduating only 51.7 percent of those who enter the ninth grade on time.

High School Dropouts: Where Do We Go Now?

The approach we take to the mounting dilemma of high school dropouts may well set the course for South Carolina’s future prosperity. So, where do we go from here?

The incidence of low graduation rates and high dropout rates are only symptoms of more pervasive, underlying problems. The long term, permanent solution to high school dropouts lies in our efforts to institute multi-faceted reforms in order to meet the rigorous demands of a global economy.