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The Effect Of Youth Labor Market Experience On Adult Earnings

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  • JEREMIAH RICHEY

    (Kyungpook National University, Korea)

Abstract

This paper investigates the effect of multiple youth jobs on adult earnings using the 1997 National Longitudinal Survey of Youth along with multiple regression specifications to identify treatment effects and a set of relatively weak nonparametric assumptions that provide tight bounds on treatment effects. Various specifications under an exogenous selection assumption indicate that an additional youth job increases adult yearly income by about $600 with the effect on men being larger than the effect on women. These specifications control for the number of adult jobs as well as the number of weeks worked as a youth. The partial identification strategy bounds the effect for men to be greater than zero, yet substantially smaller than the regression results. However, the confidence intervals on these estimates do not exclude a zero effect. Though a spurious explanation cannot be completely ruled out by the analysis, the results in this paper seem to imply that working multiple jobs as a youth has positive effects on adult earnings beyond pure labor market experience in contrast to the negative effect of multiple jobs as an adult.

Suggested Citation

  • Jeremiah Richey, 2014. "The Effect Of Youth Labor Market Experience On Adult Earnings," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 39(1), pages 47-61, March.
    • Handle: RePEc:jed:journl:v:39:y:2014:i:1:p:47-61
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    References listed on IDEAS

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    1. Manski, Charles F, 1990. "Nonparametric Bounds on Treatment Effects," American Economic Review, American Economic Association, vol. 80(2), pages 319-323, May.
    2. V. Joseph Hotz & Lixin Colin Xu & Marta Tienda & Avner Ahituv, 2002. "Are There Returns To The Wages Of Young Men From Working While In School?," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 221-236, May.
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    5. Charles F. Manski & John V. Pepper, 2000. "Monotone Instrumental Variables, with an Application to the Returns to Schooling," Econometrica, Econometric Society, vol. 68(4), pages 997-1012, July.
    6. David Neumark, 2002. "Youth Labor Markets In The United States: Shopping Around Vs. Staying Put," The Review of Economics and Statistics, MIT Press, vol. 84(3), pages 462-482, August.
    7. Charles F. Manski, 1989. "Anatomy of the Selection Problem," Journal of Human Resources, University of Wisconsin Press, vol. 24(3), pages 343-360.
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    More about this item

    Keywords

    Youth Labor; Income; Partial Identification;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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