Are there returns to the wages of young men from working while in school?

Journal Article (Review;Journal)

This paper examines the effects of work experience acquired while youth were in high school (and college) on young men's wage rates. Previous studies have found sizeable and persistent rates of return to working while enrolled in school, especially high school, on subsequent wage growth. We evaluate the extent to which these estimates represent causal effects by assessing the robustness of prior findings to controls for unobserved heterogeneity and sample selectivity. We explore more-general econometric methods for dealing with the dynamic of selection and apply them to data on young men from the 1979 National Longitudinal Survey of Youth (NLSY79). We find that the estimated returns to working while in high school or college are dramatically diminished in magnitude and are not statistically significant when one applies dynamic selection methods.

Full Text

Duke Authors

Cited Authors

  • Joseph Hotz, V; Xu, LC; Tienda, M; Ahituv, A

Published Date

  • May 1, 2002

Published In

Volume / Issue

  • 84 / 2

Start / End Page

  • 221 - 236

International Standard Serial Number (ISSN)

  • 0034-6535

Digital Object Identifier (DOI)

  • 10.1162/003465302317411497

Citation Source

  • Scopus