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Labor Market Conditions and Racial/Ethnic Differences in College Enrollment

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  • Andria Smythe

    (Howard University Department of Economics)

Abstract

The racial/ethnic differences in college enrollment are pervasive and persistent. In this article, I provide evidence of a business cycle-driven component to the college enrollment gaps among racial/ethnic groups in the USA. Using a nationally representative sample from the National Longitudinal Survey of Youths 1997 (NLSY97) and fixed-effects enrollment probability models, I find that Hispanics are more likely than non-Black-non-Hispanics to enroll in 2-year college during high unemployment periods. Similarly, I find that individuals who are Black are more likely than non-Black-non-Hispanic individuals to enroll in 2-year colleges but are less likely to enroll in 4-year colleges during periods of high unemployment. The positive effect of high unemployment rate on 2-year college enrollment for Blacks is almost entirely offset by negative effects on 4-year college enrollment. Non-Black-non-Hispanics are least sensitive to labor market conditions. The cyclicality of college enrollment rates of Blacks and Hispanics and the relatively smooth enrollment rates of non-Black-non-Hispanic individuals may be able to explain a part of the persistent gap in college enrollment.

Suggested Citation

  • Andria Smythe, 2019. "Labor Market Conditions and Racial/Ethnic Differences in College Enrollment," Journal of Economics, Race, and Policy, Springer, vol. 2(3), pages 173-183, September.
    • Handle: RePEc:spr:joerap:v:2:y:2019:i:3:d:10.1007_s41996-019-00030-4
    DOI: 10.1007/s41996-019-00030-4
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    References listed on IDEAS

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    1. David Card & Thomas Lemieux, 2001. "Dropout and Enrollment Trends in the Postwar Period: What Went Wrong in the 1970s?," NBER Chapters, in: Risky Behavior among Youths: An Economic Analysis, pages 439-482, National Bureau of Economic Research, Inc.
    2. Martha J. Bailey & Susan M. Dynarski, 2011. "Gains and Gaps: Changing Inequality in U.S. College Entry and Completion," NBER Working Papers 17633, National Bureau of Economic Research, Inc.
    3. Hilary Hoynes & Douglas L. Miller & Jessamyn Schaller, 2012. "Who Suffers during Recessions?," Journal of Economic Perspectives, American Economic Association, vol. 26(3), pages 27-48, Summer.
    4. Thomas Lemieux, 2006. "Increasing Residual Wage Inequality: Composition Effects, Noisy Data, or Rising Demand for Skill?," American Economic Review, American Economic Association, vol. 96(3), pages 461-498, June.
    5. Bedard, Kelly & Herman, Douglas A., 2008. "Who goes to graduate/professional school? The importance of economic fluctuations, undergraduate field, and ability," Economics of Education Review, Elsevier, vol. 27(2), pages 197-210, April.
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