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State Merit Aid Programs and Youth Labor Market Attachment

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  • David E. Frisvold
  • Melinda Pitts

Abstract

This paper examines the impact of state merit-aid programs on the labor market attachment of high school-aged youths. The labor force participation rate of teenagers has fallen substantially in recent decades, coinciding with the introduction of merit-aid programs. These programs reduce the price of attending an in-state public college or university for high-achieving students and have the potential to influence students’ allocation of time and effort between labor market activities, human capital development, and other forms of leisure. We examine the influence of these programs based on their generosity, both in the amount of aid provided to a recipient and the percent of students who are recipients of aid, and in their selectivity. Our results suggest that programs that are more selective reduce labor force participation, but are not a significant cause in the decline in teenage labor force participation in recent decades.

Suggested Citation

  • David E. Frisvold & Melinda Pitts, 2018. "State Merit Aid Programs and Youth Labor Market Attachment," NBER Working Papers 24662, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:24662
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    Cited by:

    1. Breno Braga & Olga Malkova, 2024. "Time to Grow Up? Adult Children as Determinants of Parental Labor Supply," Journal of the European Economic Association, European Economic Association, vol. 22(1), pages 230-262.
    2. Braga, Breno & Malkova, Olga, 2020. "Hope for the Family: The Effects of College Costs on Maternal Labor Supply," IZA Discussion Papers 12958, IZA Network @ LISER.

    More about this item

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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