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High School Graduation, Performance, and Wages

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  • Weiss, Andrew

Abstract

Using data from the Panel Study of Income Dynamics and a proprietary sample of semiskilled production workers, this paper investigates the reasons for the discontinuous increase in wages associated with graduation from high school. The author finds a discontinuous decrease in workers' propensities to quit or be absent. However, he does not find that graduates have a comparative advantage in production jobs requiring more training, nor in either sample is there a discontinuous increase in required training associated with the jobs held by graduates. The wage premium associated with graduation from high school appears to be procyclical, falling during slumps. There is also some evidence suggesting that prior quits have a larger effect on the wages of graduates than on the wages of dropouts. Copyright 1988 by University of Chicago Press.

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Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Political Economy.

Volume (Year): 96 (1988)
Issue (Month): 4 (August)
Pages: 785-820

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Handle: RePEc:ucp:jpolec:v:96:y:1988:i:4:p:785-820

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Cited by:
  1. Christopher J. Ruhm, 1995. "Is High School Employment Consumption or Investment?," NBER Working Papers 5030, National Bureau of Economic Research, Inc.
  2. Coles, Melvyn G. & Treble, John G., 1996. "Calculating the price of worker reliability," Labour Economics, Elsevier, vol. 3(2), pages 169-188, September.
  3. Eliasson, Kent, 2006. "The Effects of Accessibility to University Education on Enrollment Decisions, Geographical Mobility, and Social Recruitment," UmeÃ¥ Economic Studies 690, Umeå University, Department of Economics.
  4. Gemus, Jonathan, 2010. "College Achievement and Earnings," Working Paper Series 2010:1, Uppsala University, Department of Economics.
  5. Perri, Timothy J., 2002. "Signaling versus contingent contracts with costly turnover," Journal of Economic Behavior & Organization, Elsevier, vol. 48(4), pages 365-374, August.
  6. Philip Trostel & Ian Walker, 2004. "Sheepskin effects in work behaviour," Applied Economics, Taylor & Francis Journals, vol. 36(17), pages 1959-1966.
  7. Alexander J. Cowell, 2006. "The relationship between education and health behavior: some empirical evidence," Health Economics, John Wiley & Sons, Ltd., vol. 15(2), pages 125-146.
  8. Harry J. Holzer, 1989. "Wages, Employer Costs, and Employee Performance in the Firm," NBER Working Papers 2830, National Bureau of Economic Research, Inc.
  9. Kinvi D.A. Logossah, 1994. "Capital humain et croissance économique : une revue de la littérature," Économie et Prévision, Programme National Persée, vol. 116(5), pages 17-34.
  10. Shelly Lundberg, 2011. "Psychology and Family Economics," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 12(s1), pages 66-81, 05.
  11. Harry J. Holzer, 1988. "The Determinants of Employee Productivity and Earnings: Some New Evidence," NBER Working Papers 2782, National Bureau of Economic Research, Inc.
  12. Tisdell, Clement A., 2005. "Education's Role in Economic Development and in Assisting the Poor," Social Economics, Policy and Development Working Papers 123452, University of Queensland, School of Economics.

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