Wages and the education and employment choices of young people: empirical analysis for Great Britain
This paper examines the responsiveness of the education and employment choices of young people in Great Britain to the level of wages currently available to them in the labour market. Our results show that among young males in particular, the probability of continued participation in full-time education declines significantly as the expected wage increases. The effects for young women are smaller and not statistically significant in general. In addition, we find that the probability of being inactive â€“ not in education, employment or training â€“ increases also with the level of expected wage, particularly in the case of young males of lower academic ability. In the light of these findings, we assess the impact of the recent introduction of a national minimum wage for 16 and 17 year olds on education and employment decisions of young men in Great Britain. Keywords; education, employment, wages, young people
|Date of creation:||01 Jan 2006|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (+44) 23 80592537
Fax: (+44) 23 80593858
Web page: http://www.economics.soton.ac.uk/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Neumark, David & Wascher, William, 2003. "Minimum wages and skill acquisition: another look at schooling effects," Economics of Education Review, Elsevier, vol. 22(1), pages 1-10, February.
- Michele Campolieti & Tony Fang & Morley Gunderson, 2005. "Minimum wage impacts on youth employment transitions, 1993-1999," Canadian Journal of Economics, Canadian Economics Association, vol. 38(1), pages 81-104, February.
- David Neumark & William Wascher, 1995.
"Minimum wage effects on school and work transitions of teenagers,"
Finance and Economics Discussion Series
95-7, Board of Governors of the Federal Reserve System (U.S.).
- Neumark, David & Wascher, William, 1995. "Minimum-Wage Effects on School and Work Transitions of Teenagers," American Economic Review, American Economic Association, vol. 85(2), pages 244-49, May.
- Stephen V. Cameron & James J. Heckman, 1998. "Life Cycle Schooling and Dynamic Selection Bias: Models and Evidence for Five Cohorts of American Males," Journal of Political Economy, University of Chicago Press, vol. 106(2), pages 262-333, April.
- Dean Hyslop & Steven Stillman, 2004.
"Youth Minimum Wage Reform and the Labour Market,"
Treasury Working Paper Series
04/03, New Zealand Treasury.
- Neumark, David & Wascher, William, 1995.
"Minimum Wage Effects on Employment and School Enrollment,"
Journal of Business & Economic Statistics,
American Statistical Association, vol. 13(2), pages 199-206, April.
- David Neumark & William Wascher, 1994. "Minimum Wage Effects on Employment and School Enrollment," NBER Working Papers 4679, National Bureau of Economic Research, Inc.
- Patricia Rice, 1999. "The impact of local labour markets on investment in further education: Evidence from the England and Wales youth cohort studies," Journal of Population Economics, Springer, vol. 12(2), pages 287-312.
- David Neumark & William Wascher, 1995. "The Effects of Minimum Wages on Teenage Employment and Enrollment: Evidence from Matched CPS Surveys," NBER Working Papers 5092, National Bureau of Economic Research, Inc.
- Fishe, Raymond P. H. & Trost, R. P. & Lurie, Philip M., 1981. "Labor force earnings and college choice of young women: An examination of selectivity bias and comparative advantage," Economics of Education Review, Elsevier, vol. 1(2), pages 169-191, April.
When requesting a correction, please mention this item's handle: RePEc:stn:sotoec:0612. 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: (Chris Thorn)
If references are entirely missing, you can add them using this form.