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The Effect of High School Employment on Educational Attainment in Canada

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Author Info
Daniel Parent

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Abstract

The objective of this paper is to assess the impact of working in the twelve months preceding the date of leaving high school, either as a graduate or as a dropout, on the probability of graduation. To do so, I use Statistics Canada's 1991 School Leavers Survey and its 1995 Follow-up. Given that both the decision to graduate and the decision to work are endogenous variables, I use local labour market conditions as an exclusion restriction. The results show a strong negative effect of working while in school on the probability of graduation for men. Specification checks show that this negative impact is driven by variations in hours worked induced by favourable local labour market conditions for those working a relatively large number of hours per week. The results for females are somewhat inconclusive due in part to the rejection of the exclusion restrictions.

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Publisher Info
Paper provided by CIRPEE in its series Cahiers de recherche with number 0413.

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Date of creation: 2004
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Handle: RePEc:lvl:lacicr:0413

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Related research
Keywords: High school non-completion; Local labour market conditions; Instrumental variables;

Find related papers by JEL classification:
I2 - Health, Education, and Welfare - - Education
C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Gerald S. Oettinger, 1999. "Does high school employment affect high school academic performance?," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 53(1), pages 136-151, October.
  2. Powell, James L, 1986. "Symmetrically Trimmed Least Squares Estimation for Tobit Models," Econometrica, Econometric Society, vol. 54(6), pages 1435-60, November. [Downloadable!] (restricted)
  3. Paul Beaudry & Thomas Lemieux & Daniel Parent, 2000. "What is Happening in the Youth Labour Market in Canada?," Canadian Public Policy, University of Toronto Press, vol. 26(s1), pages 59-83, July. [Downloadable!] (restricted)
    Other versions:
  4. Heckman, James J, 1978. "Dummy Endogenous Variables in a Simultaneous Equation System," Econometrica, Econometric Society, vol. 46(4), pages 931-59, July. [Downloadable!] (restricted)
    Other versions:
  5. Zvi Eckstein & Kenneth I. Wolpin, 1999. "Why Youths Drop Out of High School: The Impact of Preferences, Opportunities, and Abilities," Econometrica, Econometric Society, vol. 67(6), pages 1295-1340, November.
  6. Powell, James L., 1984. "Least absolute deviations estimation for the censored regression model," Journal of Econometrics, Elsevier, vol. 25(3), pages 303-325, July. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Pauline Domingo, 2007. "Travail en cours d'études, échec et insertion professionnelle : le cas des DEUG non diplômés," Documents de travail du Centre d'Economie de la Sorbonne r07007, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne. [Downloadable!]
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