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High School Enrollment, Minimum Wages and Education Spending

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  • Stuart Landon

Abstract

The impact on high school enrollment of minimum wages and different types of education spending is examined empirically using Canadian provincial-level data. Increases in the minimum wage are shown to have a significant negative effect on the enrollment rates of 16- and 17-year-old males and 17-year-old females. The empirical estimates imply that a 50 cent increase in the hourly minimum wage causes a 0.7 percentage point fall in the percent of 16- and 17-year-olds enrolled in school (a decline that, in Ontario, would amount to more than 1,700 students). The results also indicate that lower student-teacher ratios, better paid teachers, more administrative spending, increased spending on instructional supplies, and increases in other school board operating expenditures do not have a systematic effect on enrollment rates.

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Bibliographic Info

Article provided by University of Toronto Press in its journal Canadian Public Policy.

Volume (Year): 23 (1997)
Issue (Month): 2 (June)
Pages: 141-163

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Handle: RePEc:cpp:issued:v:23:y:1997:i:2:p:141-163

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Postal: University of Toronto Press Journals Division 5201 Dufferin Street Toronto, Ontario, Canada M3H 5T8
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References

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  1. Stephen Donald & David Green & Harry Paarsch, . "Differences in Earnings and Wage Distributions between Canada and the United States: An Application of a Semi-Parametric Estimator of Distribution Functions with Covariates," Working Papers, University of California at Berkeley, Econometrics Laboratory Software Archive _003, University of California at Berkeley, Econometrics Laboratory Software Archive.
  2. David Neumark & William Wascher, 1995. "Minimum wage effects on school and work transitions of teenagers," Finance and Economics Discussion Series, Board of Governors of the Federal Reserve System (U.S.) 95-7, Board of Governors of the Federal Reserve System (U.S.).
  3. repec:fth:prinin:300 is not listed on IDEAS
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  11. Baker, Michael & Benjamin, Dwayne & Stanger, Shuchita, 1999. "The Highs and Lows of the Minimum Wage Effect: A Time-Series Cross-Section Study of the Canadian Law," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 17(2), pages 318-50, April.
  12. David Card, 1992. "Using regional variation in wages to measure the effects of the federal minimum wage," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 46(1), pages 22-37, October.
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  15. Evans, William N & Oates, Wallace E & Schwab, Robert M, 1992. "Measuring Peer Group Effects: A Study of Teenage Behavior," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 100(5), pages 966-91, October.
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Citations

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Cited by:
  1. Pacheco, Gail A. & Cruickshank, Amy A., 2007. "Minimum wage effects on educational enrollments in New Zealand," Economics of Education Review, Elsevier, Elsevier, vol. 26(5), pages 574-587, October.
  2. Patricia Rice, 2010. "Minimum wages and schooling: evidence from the UK's introduction of a national minimum wage," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 33515, London School of Economics and Political Science, LSE Library.
  3. Konstantinos Eleftheriou & George Athanasiou & Panagiotis Petrakis, 2010. "Wages and Higher Education Participation," Journal of Research in Educational Sciences, ASERS Publishing, ASERS Publishing, vol. 0(1), pages 22-31, June.
  4. Matthew Webb & Arthur Sweetman & Casey Warman, 2014. "How Targeted is Targeted Tax Relief? Evidence from the Unemployment Insurance Youth Hires Program," Working Papers, Queen's University, Department of Economics 1298, Queen's University, Department of Economics.
  5. Elizabeth Webster & Mark Wooden & Gary Marks, 2004. "Reforming the Labour Market for Australian Teachers," Melbourne Institute Working Paper Series, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne wp2004n28, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.

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