The idea that educational externalities affect local governments' incentive to provide such service was proposed over a century ago. Several studies have tested the relationship in the US, with mixed results. However, the theory has rarely been tested systematically outside of the US context. Paradoxically the unique household registration system…

Dropping out of high school is related to a number of negative outcomes. For example, the median income of persons ages 18 through 67 who had not completed high school was roughly $26,000 in 2013. By comparison, the median income of persons ages 18 through 67 who completed their education with at least a high school credential (i.e., a regular…