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Wages, Youth Employment, and School Enrollment: Recent Evidence from Increases in World Oil Prices

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  • René Morissette
  • Ping Ching Winnie Chan
  • Yuqian Lu

Abstract

We exploit variation in wage growth induced by increases in world oil prices to estimate the elasticity of young men’s labor market participation and school enrollment with respect to after-tax wages. Our main finding is that in the aggregate, increased wages have a dual impact: They tend to reduce—at least temporarily—young men’s full-time university enrollment rates but bring (back) into the labor market some young men who were neither enrolled in school nor employed. Contrary to previous research, we find little evidence that young men with no high school diploma now leave school in response to increased wages.

Suggested Citation

  • René Morissette & Ping Ching Winnie Chan & Yuqian Lu, 2015. "Wages, Youth Employment, and School Enrollment: Recent Evidence from Increases in World Oil Prices," Journal of Human Resources, University of Wisconsin Press, vol. 50(1), pages 222-253.
    • Handle: RePEc:uwp:jhriss:v:50:y:2015:i:1:p:222-253
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    References listed on IDEAS

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