NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Do Students Care about School Quality? Determinants of Dropout Behavior in Developing Countries

Eric A. Hanushek, Victor Lavy, Kohtaro Hitomi

NBER Working Paper No. 12737
Issued in December 2006

---- Acknowledgements -----

Eric Swanson provided us with the data and with help in understanding the sampling and the schooling situation in Egypt. Trey Miller provided helpful research assistance. We benefited from many useful comments and suggestions by Joshua Angrist, Mark Bils, Bruce Chapman, Paul Chen, Mark Harrison, Elizabeth King, Emmanuel Jimenez, Michele Tertilt, Martin Zelder, participants of the World Bank's Seminar on Household's Human Capital Investments, and seminars at the University of Rochester, the Australian National University, Texas A&M, University of Wisconsin, Hebrew University, Yale University, and Cornell University. Finally, Finis Welch helped clarify some key modeling points An earlier version of this paper was presented at the Conference on Human Capital, University of Buffalo, October 26-28, 2006. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.

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