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The Effect of High School Employment on Educational Attainment in Canada

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  • Daniel Parent

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.

Suggested Citation

  • Daniel Parent, 2004. "The Effect of High School Employment on Educational Attainment in Canada," Cahiers de recherche 0413, CIRPEE.
    • Handle: RePEc:lvl:lacicr:0413
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    References listed on IDEAS

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    1. Powell, James L, 1986. "Symmetrically Trimmed Least Squares Estimation for Tobit Models," Econometrica, Econometric Society, vol. 54(6), pages 1435-1460, November.
    2. 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.
    3. Stephen Cameron & James J. Heckman, 1994. "Determinants of Young Males' Schooling and Training Choices," NBER Chapters, in: Training and the Private Sector: International Comparisons, pages 201-232, National Bureau of Economic Research, Inc.
    4. Heckman, James J, 1978. "Dummy Endogenous Variables in a Simultaneous Equation System," Econometrica, Econometric Society, vol. 46(4), pages 931-959, July.
    5. Powell, James L., 1984. "Least absolute deviations estimation for the censored regression model," Journal of Econometrics, Elsevier, vol. 25(3), pages 303-325, July.
    6. 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.
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    Cited by:

    1. Pauline Domingo, 2007. "Travail en cours d'études, échec et insertion professionnelle : le cas des DEUG non diplômés," Post-Print halshs-00144366, HAL.
    2. Daniel Parent, 2006. "Work while in high school in Canada: its labour market and educational attainment effects," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 39(4), pages 1125-1150, November.
    3. 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.

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    More about this item

    Keywords

    High school non-completion; Local labour market conditions; Instrumental variables;
    All these keywords.

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables

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