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High School Dropout Determinants: The Effect of Poverty and Learning Disabilities

not constrained, Human Capital Theory suggests that these students determine that the cost of lost wages exceeds the gain received by investing in a high school diploma. However, instances arise when students are forced out of high school due to poor grades or bad behavior. Until this time, the United States’ labor market has incorporated these lower skilled workers, but today the U.S. faces a new challenge of increasing global competition and a loss of jobs, especially lower skilled jobs, to less expensive overseas operations. If this trend continues, the outlook for these high school dropouts appears to be bleak. Therefore, today society needs to stress the importance of education, and by studying the determinants of dropping out of high school, society can target the students most inclined to drop out and hopefully improve their chances of economic success in the future by encouraging them to complete high school. Numerous studies have found determinants of high school completion; most studies focus on socioeconomic and academic performance factors. This research aims to study the impact of socioeconomic status and learning disabilities, has on the prevalence of learning disabilities, and then the impact learning disabilities has on high school completion. Moreover, this study aims to determine if an interaction between these two factors exists, thereby causing an increased disadvantage of attaining a high school education for these students possessing both of these characteristics. Additionally, this study will show the effectiveness of the current efforts towards helping these students facing poverty and/or learning disabilities.