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School Performance and the Youth Labor Market

Author

Listed:
  • Kevin M. Murphy

    (University of Chicago)

  • Sam Peltzman

    (University of Chicago)

Abstract

We estimate how 197090 changes in an outcome-based measure of school quality (state average test scores) affected changes in earnings for those leaving high school to enter a state's labor force. We find that a one standard deviation deterioration in a state's relative test score performance is associated with a 3% (or .5 SD) reduction in average wages of young entrants to the labor force. We also find a similar decline in college matriculation. There is weak evidence that the school quality effect on earnings diminishes as labor force entrants acquire experience.

Suggested Citation

  • Kevin M. Murphy & Sam Peltzman, 2004. "School Performance and the Youth Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 22(2), pages 299-328, April.
    • Handle: RePEc:ucp:jlabec:v:22:y:2004:i:2:p:299-328
    DOI: 10.1086/381251
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    References listed on IDEAS

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    1. Card, David & Krueger, Alan B, 1992. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 1-40, February.
    2. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-442, June.
    3. Richard B. Freeman & Casey Ichniowski, 1988. "When Public Sector Workers Unionize," NBER Books, National Bureau of Economic Research, Inc, number free88-1, March.
    4. Peltzman, Sam & Murphy, Kevin M., 2000. "The Effects of School Quality on the Youth Labor Market," Working Papers 162, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    5. Freeman, Richard B. & Ichniowski, Casey (ed.), 1988. "When Public Sector Workers Unionize," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226261669, December.
    6. Peltzman, Sam, 1993. "The Political Economy of the Decline of American Public Education," Journal of Law and Economics, University of Chicago Press, vol. 36(1), pages 331-370, April.
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    Cited by:

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    2. Juliana Carneiro & Matthew A. Cole & Eric Strobl, 2024. "Foetal Exposure to Air Pollution and Students' Cognitive Performance: Evidence from Agricultural Fires in Brazil," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 86(1), pages 156-186, February.
    3. Bart H. H. Golsteyn & Stefa Hirsch, 2019. "Are estimates of intergenerational mobility biased by non-response? Evidence from the Netherlands," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 52(1), pages 29-63, January.
    4. Avitabile, Ciro & de Hoyos, Rafael, 2018. "The heterogeneous effect of information on student performance: Evidence from a randomized control trial in Mexico," Journal of Development Economics, Elsevier, vol. 135(C), pages 318-348.
    5. Grace Chia & Paul W Miller, 2007. "Tertiary Performance, Field of Study and Graduate Starting Salaries," Economics Discussion / Working Papers 07-12, The University of Western Australia, Department of Economics.
    6. Andréa Zaitune Curi & Naércio Aquino Menezes-Filho, 2005. "A Relação Entre O Desempenho Escolar E Os Salários No Brasil," Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33rd Brazilian Economics Meeting] 158, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    7. Vu, Tien Manh & Yamada, Hiroyuki, 2022. "Returns to test scores in Vietnam," MPRA Paper 111714, University Library of Munich, Germany.
    8. Machado, Fabiana, 2013. "Decentralization and Accountability: The Curse of Local Underdevelopment," IDB Publications (Working Papers) 4620, Inter-American Development Bank.
    9. Laura Desirée Vernier Fujita & Izete Pengo Bagolin, 2021. "Educational growth: An analysis of distribution among Brazilian municipalities," Review of Development Economics, Wiley Blackwell, vol. 25(1), pages 277-292, February.
    10. Siahaan, Freddy & Lee, Daniel Y. & Kalist, David E., 2014. "Educational attainment of children of immigrants: Evidence from the national longitudinal survey of youth," Economics of Education Review, Elsevier, vol. 38(C), pages 1-8.
    11. Laura Desirée Vernier Fujita & Izete Pengo Bagolin & Adelar Fochezatto, 2021. "Spatial distribution and dissemination of education in Brazilian municipalities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 66(2), pages 255-277, April.

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