Abstract:

Choosing higher education represents a pivotal life decision, demanding substantial commitment from students. The widespread issue of failure in higher education carries significant consequences for individuals and the education system as a whole. Dropout in higher education, including at the master's level, remains a complex and pertinent subject examined since Tinto's pioneering studies in 1975.

Highlighting the multifaceted nature of higher education dropout, various factors interact in intricate ways. The decision to discontinue an educational program involves a protracted and intricate process, where diverse challenges converge, making departure seemingly inevitable. The multidimensional causes of school dropout, spanning psychological, social, economic, psycho-pedagogical, institutional, and pedagogical factors, require examination to develop preventive measures within higher education institutions (HEI).

In 2021, approximately 18.5 million students pursued higher education in the European Union, with 28% at the master's level. A significant portion of these students is expected to face challenges in successfully completing their academic degrees.

While numerous studies explore academic failure in higher education, the emphasis often leans toward the undergraduate level, overlooking master's level programs. The increasing enrolment in postgraduate programs underscores the importance of addressing dropout at this level.

The focus on the master's level is tied to the assumption that these students possess maturity and experience, making their enrolment decision more economically considered, albeit influenced by signal theory regarding the job market. Despite this, master's students exhibit lower completion rates.

When students abandon their studies, they face economic and psychological repercussions, impacting personal well-being and professional expectations. The failure to graduate from a master's program results in various consequences, hindering career advancement, promotions, and financial returns on the student's investment.

This process represents a loss of the opportunity to obtain a degree for students and operational inefficiencies for institutions, as resources remain underutilized. Globally, student dropout poses a challenge to higher education systems, affecting resource utilization, talent loss, and long-term societal benefits.

This paper aims to review current knowledge on determinants potentiating dropout and the economic consequences at individual, institutional, and regional levels. Understanding these factors is crucial for developing targeted strategies to mitigate dropout rates and enhance the overall effectiveness of higher education systems.

Keywords:

Higher education, economic consequences, dropout, attrition.