Shooting for the Stars and Failing: The Effect of College Dropout on Self-Esteem

This study investigates the impact of finishing versus dropping out of college on self-esteem. Using data spanning three decades from the U.S. National Longitudinal Survey of Youth, we find that dropping out of a four-year college significantly decreases self-esteem compared to graduating. In addition, two- and four-year college graduates have significant higher self-esteem than high school graduates never enrolled in college. However, individuals dropping out of a two- or a four-year college miss out on this positive effect. These findings are long-term effects still visible when dropouts are in their late 40s.