School Performance and the Youth Labor Market

Kevin Murphy and Sam Peltzman (samp@uchicago.edu)

Journal of Labor Economics, 2004, vol. 22, issue 2, 299-328

Abstract: We estimate how 197090 changes in an outcome-based measure of school quality (state average test scores) affected changes in earnings for those leaving high school to enter a state's labor force. We find that a one standard deviation deterioration in a state's relative test score performance is associated with a 3% (or .5 SD) reduction in average wages of young entrants to the labor force. We also find a similar decline in college matriculation. There is weak evidence that the school quality effect on earnings diminishes as labor force entrants acquire experience.

Date: 2004
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Persistent link: https://EconPapers.repec.org/RePEc:ucp:jlabec:v:22:y:2004:i:2:p:299-328

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