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The Impact of Local Labor Market Conditions on the Demand for Education: Evidence from Indian Casinos

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Author Info
William Evans
Wooyoung Kim

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Abstract

Using restricted-use data from the 1990 and 2000 Census long-form, we analyze the impact of local labor market conditions on the demand for education using the economic shock produced by the opening of a new casino on an Indian reservation as the identifying event. Federal legislation in 1988 allowed Indian tribes to open casinos in many states and since then, over 400 casinos have opened, 240 of which have Las Vegas-style games. We demonstrate that the opening of a casino increased the employment and wages of low-skilled workers. Young adults responded by dropping out of high school and reducing college enrollment rates, even though many tribes have generous college tuition subsidy programs.

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File URL: http://www.ces.census.gov/index.php/ces/cespapers?down_key=101754
File Format: application/pdf
File Function: First version, 2006
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Publisher Info
Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 06-14.

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Length: 42 pages
Date of creation: Jun 2006
Date of revision:
Handle: RePEc:cen:wpaper:06-14

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Web page: http://www.ces.census.gov

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  1. Rees, Daniel I. & Mocan, H. Naci, 1997. "Labor market conditions and the high school dropout rate: Evidence from New York State," Economics of Education Review, Elsevier, vol. 16(2), pages 103-109, April. [Downloadable!] (restricted)
  2. Pedro Carneiro & James J. Heckman, 2002. "The Evidence on Credit Constraints in Post--secondary Schooling," Economic Journal, Royal Economic Society, vol. 112(482), pages 705-734, October. [Downloadable!] (restricted)
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  3. William N. Evans & Julie H. Topoleski, 2002. "The Social and Economic Impact of Native American Casinos," NBER Working Papers 9198, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Hilary Williamson Hoynes, 2000. "Local Labor Markets And Welfare Spells: Do Demand Conditions Matter?," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 351-368, August. [Downloadable!] (restricted)
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  5. Dan A. Black & Terra G. McKinnish & Seth G. Sanders, 2005. "Tight labor markets and the demand for education: Evidence from the coal boom and bust," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 59(1), pages 3-16, October. [Downloadable!] (restricted)
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This page was last updated on 2009-12-1.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.