The paper looks at secondary school attendance and grade retention after 8th grade in Hungary. It makes use of panel data of the Hungarian Life Course Survey from 2006 through 2009. Three and a half years after finishing 8th grade, ninety per cent of the children are in school, three quarters on...

The paper looks at secondary school attendance and grade retention after 8th grade in Hungary. It makes use of panel data of the Hungarian Life Course Survey from 2006 through 2009. Three and a half years after finishing 8th grade, ninety per cent of the children are in school, three quarters on...

I model the hypothesis that preferences evolve and permanent differences in individual attitudes towards work emerge between two countries characterized initially by identical preferences as a result of a period in which only one of the two countries is subject to regulations constraining labor...