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High School Enrollment, Minimum Wages and Education Spending

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  • 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.

Suggested Citation

  • Stuart Landon, 1997. "High School Enrollment, Minimum Wages and Education Spending," Canadian Public Policy, University of Toronto Press, vol. 23(2), pages 141-163, June.
  • Handle: RePEc:cpp:issued:v:23:y:1997:i:2:p:141-163
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    References listed on IDEAS

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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. 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.
    4. 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.
    5. Eleftheriou, Konstantinos & Athanasiou, George & Petrakis, Panagiotis, 2009. "Wages and Higher Education Participation," MPRA Paper 19615, University Library of Munich, Germany.
    6. Kellermann, Kim Leonie, 2017. "Minimum wages and vocational training incentives in Germany," CIW Discussion Papers 3/2017, University of M√ľnster, Center for Interdisciplinary Economics (CIW).
    7. 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.
    8. 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.

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