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Abstract

Having achieved remarkable improvement in access to basic education, India now faces an issue of low school progression beyond primary school. This paper attempts to investigate the schooling investment decisions by identifying the determinants of school progression in Andhra Pradesh state in India. The sequential logit model estimation using a panel data from cohort study which follows nearly 1,000 children from 2002 to 2013 sheds light on the dynamic aspect of schooling at different stages in primary and secondary education. The main findings are: (i) child’s reading and writing skills at 12 years old have persistent positive effects on school progression, (ii) job opportunities in terms of wage of unskilled workers show positive effects on school progression on boys while job opportunities in terms of presence of factory in locality show positive impact on school progression of both boys and girls, (iii) girls from households with less wealth and high dependency ratio, and the eldest girls in the household are more likely to drop out of school and marry at the age of 19.

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