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High School Enrollment, Minimum Wages and Education Spending

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Listed author(s):
  • Stuart Landon

Abstract

The impact on high school enrollment of minimum wages and different types of education spending is examined empirically using Canadian provincial-level data. Increases in the minimum wage are shown to have a significant negative effect on the enrollment rates of 16- and 17-year-old males and 17-year-old females. The empirical estimates imply that a 50 cent increase in the hourly minimum wage causes a 0.7 percentage point fall in the percent of 16- and 17-year-olds enrolled in school (a decline that, in Ontario, would amount to more than 1,700 students). The results also indicate that lower student-teacher ratios, better paid teachers, more administrative spending, increased spending on instructional supplies, and increases in other school board operating expenditures do not have a systematic effect on enrollment rates.

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Article provided by University of Toronto Press in its journal Canadian Public Policy.

Volume (Year): 23 (1997)
Issue (Month): 2 (June)
Pages: 141-163

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Handle: RePEc:cpp:issued:v:23:y:1997:i:2:p:141-163
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  1. Joshua D. Angrist & Alan B. Keueger, 1991. "Does Compulsory School Attendance Affect Schooling and Earnings?," The Quarterly Journal of Economics, Oxford University Press, vol. 106(4), pages 979-1014.
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  5. Card, David & Krueger, Alan B, 1994. "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania," American Economic Review, American Economic Association, vol. 84(4), pages 772-793, September.
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  8. David Card & Lawrence Katz & Alan Krueger, 1993. "Comment on David Neumark and William Wascher, 'Employment Effects of Minimum and Subminimum Wages: Panel Data on State Minimum Wage Laws'," Working Papers 695, Princeton University, Department of Economics, Industrial Relations Section..
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  16. Randall J. Olsen & George Farkas, 1989. "Endogenous Covariates in Duration Models and the Effect of Adolescent Childbirth on Schooling," Journal of Human Resources, University of Wisconsin Press, vol. 24(1), pages 39-53.
  17. Sander, William & Krautmann, Anthony C., 1991. "Local taxes, schooling, and jobs in Illinois," Economics of Education Review, Elsevier, vol. 10(2), pages 111-121, June.
  18. Baker, Michael & Benjamin, Dwayne & Stanger, Shuchita, 1999. "The Highs and Lows of the Minimum Wage Effect: A Time-Series Cross-Section Study of the Canadian Law," Journal of Labor Economics, University of Chicago Press, vol. 17(2), pages 318-350, April.
  19. Hanushek, Eric A, 1986. "The Economics of Schooling: Production and Efficiency in Public Schools," Journal of Economic Literature, American Economic Association, vol. 24(3), pages 1141-1177, September.
  20. Stephen Donald & David Green & Harry Paarsch, "undated". "Differences in Earnings and Wage Distributions between Canada and the United States: An Application of a Semi-Parametric Estimator of Distribution Functions with Covariates," Working Papers _003, University of California at Berkeley, Econometrics Laboratory Software Archive.
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  22. Agell, Jonas & Lommerud, Kjell Erik, 1997. "Minimum wages and the incentives for skill formation," Journal of Public Economics, Elsevier, vol. 64(1), pages 25-40, April.
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Cited by:

  1. Rice, Patricia, 2006. "Wages and the education and employment choices of young people: empirical analysis for Great Britain," Discussion Paper Series In Economics And Econometrics 612, Economics Division, School of Social Sciences, University of Southampton.
  2. Patricia Rice, 2010. "Minimum Wages and Schooling: Evidence from the UK's Introduction of a National Minimum Wage," Economics Series Working Papers 482, University of Oxford, Department of Economics.
  3. Konstantinos Eleftheriou & George Athanasiou & Panagiotis Petrakis, 2010. "Wages and Higher Education Participation," Journal of Research in Educational Sciences, ASERS Publishing, vol. 0(1), pages 22-31, June.
  4. Pacheco, Gail A. & Cruickshank, Amy A., 2007. "Minimum wage effects on educational enrollments in New Zealand," Economics of Education Review, Elsevier, vol. 26(5), pages 574-587, October.
  5. Matthew Webb & Arthur Sweetman & Casey Warman, 2014. "How Targeted is Targeted Tax Relief? Evidence from the Unemployment Insurance Youth Hires Program," Working Papers 1298, Queen's University, Department of Economics.
  6. Matthew D. Webb & Arthur Sweetman & Casey Warman, 2016. "Targeting Tax Relief at Youth Employment," Canadian Public Policy, University of Toronto Press, vol. 42(4), pages 415-430, December.
  7. Elizabeth Webster & Mark Wooden & Gary Marks, 2004. "Reforming the Labour Market for Australian Teachers," Melbourne Institute Working Paper Series wp2004n28, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.

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