Learning and Labor:: Recent evidence on the financial motivations for in-school employment duringpost-secondary education
Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
This thesis explores the financial motivations for in-school employment during postsecondary education with a particular focus on whether coming from a less affluent or credit-constrained household affects U.S. undergraduates’ decision to work while enrolled in college. Two sets of analysis are performed. The first employs rich panel data from NLSY97 and, in the tradition of earlier literature, draws inference about the role of financial constraints by studying the relationship between family income and in-school labor supply. It finds suggestive evidence that both longer-term and shorter-term constraints likely have an impact on undergraduates’ employment decisions. The second uses a cross-section of CPS data and its supplemental banking survey from January 2009 in order to more carefully identify individuals for whom liquidity constraints are likely binding. This analysis confirms the family income-hours worked relationship uncovered in NLSY97 and also estimates the impact of credit constraints using traditional OLS methods, finding sizeable but weakly significant effects. Both analyses are admittedly limited in their ability to address all the potential endogeneity concerns related to financial constraints and work/study decisions, but this thesis nevertheless highlights the fact that an individual’s financial circumstances likely affect in-school employment, a margin of decision which is neglected in much of the existing literature on human capital investment.
Place, publisher, year, edition, pages
Credit constraints; employment, in-school; financial constraints; human capital investment, labor supply; post-secondary education
IdentifiersURN: urn:nbn:se:uu:diva-203631OAI: oai:DiVA.org:uu-203631DiVA: diva2:637106
Lindahl, Mikael, Professor
Elinder, Mikael, Biträdande lektor