Minimum-Wage Effects on Human Capital Accumulation: Evidence from Canadian Data

Diana Alessandrini and Joniada Milla

Journal of Human Capital, 2024, vol. 18, issue 2, 346 - 376

Abstract: We investigate the effect of the minimum wage on individuals’ postsecondary schooling decisions. Using Canadian longitudinal data, we explore 136 minimum-wage amendments and find three novel results. First, the minimum wage affects both the quantity and type of human capital acquired by students. A 10% increase in the minimum wage increases community-college enrollment by 6.2% but reduces university enrollment by 6.5%. Second, high minimum wages widen the university participation gap between individuals with different levels of parental education. Finally, minimum-wage hikes encourage workers who recently separated from their jobs to return to postsecondary education as mature students.

Date: 2024
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Working Paper: Minimum Wage Effects on Human Capital Accumulation: Evidence from Canadian Data (2021)
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