Youth employment and academic performance: production functions and policy effects

Angus Holford

No 2015-06, ISER Working Paper Series from Institute for Social and Economic Research

Abstract: This paper proposes an approach to identifying the education production function with endogenous inputs, and applies it in the context of part-time employment decisions by UK teenagers in compulsory education. We identify simultaneously the effect of part-time employment and latent endogenous inputs including study effort, at different points in time, and compare the reduced-form effect of having a job while at school with the production function parameter. Part-time employment is shown to reduce academic performance among girls but not boys. We present evidence that this is due to employment crowding out a wider range of productive activities among girls than boys.

Date: 2015-03-27
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Working Paper: Youth Employment and Academic Performance: Production Functions and Policy Effects (2016)
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