Early school leaving among disadvantaged teenagers creates long-term social and economic costs through lower productivity, weaker employment prospects, and greater inequality. Financial incentives can slightly increase participation in full-time education, but evidence suggests they do not improve qualifications or later labour market outcomes.
In high-income countries, where education is already free and many families receive financial support, money alone may not address the main barriers facing vulnerable young people. Some students may remain longer in low-value courses while missing opportunities for work-based training or early job experience.
Policy should therefore combine financial support with practical training, clear employment pathways, and skills that employers value.
