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The 'traditional' view, in both educational and labour-market policy, of the transition from education to employment centres on the school-leaving decision - in other words, on a particular point in time when the individual concerned decides to leave full-time education and enter the labour market. The pattern and timing of school-leaving decisions have given cause for considerable concern amongst policymakers in the UK. Many more individuals leave full-time education prematurely in the UK than in other industrialised (and some industrialising) countries, and there has been considerable discussion of the role that may be played by financial factors in early school leaving (for example, Micklewright, Pearson and Smith (1988 and 1990)). In response to these concerns, educational and social security policies have sought to discourage early entry into the labour market, whilst labour-market policies directed at the 16- to 18-year-old age-group have concentrated on providing training and work experience to those who have taken the decision to leave school.

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