The Unexpected Effects of No Pass,No Drive Policies on High School Education

Since 1988, 27 states have introduced No Pass, No Drive laws, which tie a teenager's ability to receive and maintain a driver's license to various school-related outcomes—most commonly, enrollment and attendance. Enrollment-Based No Pass, No Drive policies, in 21 states, target both enrollment and attendance, and have negligible effects on dropout rates. However, these policies decrease the Averaged Freshman Graduation Rate (AFGR) by between 1 and 1.7 percentage points. This lower graduation rate stems from students delaying their dropout decision by up to two years. As a result, these students are retained in the ninth and tenth grades, increasing 9th-grade enrollment by 3.6 percent relative to 8th-grade enrollment the year prior; this causes an artificial reduction in the graduation rate, rather than a reduction in the true likelihood that a student will graduate. Truancy-Based No Pass, No Drive policies, in five states, target only attendance—teens that fail to meet a minimum attendance requirement lose their driver's license. However, these policies allow students to drop out of school without facing this penalty. These policies increase the annual dropout rate by between 23 and 34 percent (1 to 1.6 percentage points).