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Higher Minimum Wage and High School Dropout Rates

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Author Info
Stephanie O. Crofton
William L. Anderson
Emily C. Rawe
Abstract

We explore whether higher levels of the real minimum wage have differing effects on high school dropout rates across students of various races and ethnicities (whites, African Americans, Hispanics, and Asians). Using a panel of data across Maryland counties and annual observations in 1993-2004, we found higher real minimum wages to be associated with higher dropout rates for Hispanic students, but not for other races and ethnicities. We used a variety of model specifications and explanatory variables, including real income, the unemployment rate, teen pregnancy rates, and educational attainment among adults. Several of our findings are broadly consistent with commonly reported sociological observations regarding how behavioral choices may be affected by different levels across races and ethnicities of cultural integration of recent immigrants, family cohesiveness, the value placed on education, small business ownership, and hourly (vs. salaried) employment. Copyright © 2009 American Journal of Economics and Sociology, Inc..

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Article provided by Blackwell Publishing in its journal American Journal of Economics and Sociology.

Volume (Year): 68 (2009)
Issue (Month): 2 (04)
Pages: 445-464
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Handle: RePEc:bla:ajecsc:v:68:y:2009:i:2:p:445-464

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This page was last updated on 2009-12-18.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.