IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Youth Employment and Academic Performance in High School

  • Eckstein, Zvi
  • Wolpin, Kenneth

The Fair Labour Standards Act (FLSA), impose restriction on working hours and the type of jobs held by minors at ages below 18. Hours worked in the National Longitudinal Survey of Youth (NLSY) sample increased monotonically from 2.5 for the 14-year-olds to 16.2 for the 18-year-olds, and among those who worked positive hours, it increased from 8.9 to 24.5. This evidence is, de facto, in compliance with the FLSA regulations on weekly hours. The aim of this paper is to assess one of the underlying premises for the legislation, namely that working while attending high school could adversely affect school performance. We formulate and estimate an explicit sequential decision model of high school attendance and work that captures in a stylized fashion the important institutional features of high school grade progression. Individuals accumulate credits (courses) towards graduation depending on the individual’s history of performance (knowledge acquisition), the level of participation in the labour market (hours worked) and their known (to them) ability and motivation. The labour market (randomly) offers wages for part-time and full-time employment that depend also on some inherent skill ‘endowment’ and labour market experience. The value of attending high school consists of both the perceived investment pay-off to graduation and on a current consumption value which is random. We simplify the model by assuming that a terminal condition for decisions during the high school period and its value can be estimated as an additional parameter of the model. Our results indicate that a policy that forced youths to remain in high school for five years or until they graduate, whichever comes first, without working would increase the number of high school graduates by slightly more than 2 percentage points (from 82% to 84.1%).

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=1861
Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1861.

as
in new window

Length:
Date of creation: Apr 1998
Date of revision:
Handle: RePEc:cpr:ceprdp:1861
Contact details of provider: Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ.
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820

Order Information: Email:


No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:1861. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

The email address of this maintainer does not seem to be valid anymore. Please ask to update the entry or send us the correct address

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.