This project focuses on the impact of Denmark’s Youth Unemployment Program(YUP) enacted in late 1990s on the rise in VET dropout rates. The Youth Unemployment Program targeted unemployed, low-educated youth to strengthen the employment possibilities and to motivate for them to undertake an education. If the Youth Unemployment Program incentivized less capable/ambitious students to enter vocational education, it would increase the dropout rates via selection. This project investigates whether the program had an effect on the population characteristics of incoming VET students and the resulting dropout rates.