Working Paper: NBER ID: w31540
Authors: Diane Whitmore Schanzenbach; Julia A. Turner; Sarah Turner
Abstract: While much research attention has focused on the direct labor market effect of minimum wage increases on employment, the impact of changes in the minimum wage on college enrollment may impact educational attainment. Using institutional data on college enrollment and program completion, we find that enrollment falls markedly among students at public two-year institutions in response to increases in the minimum wage. The largest enrollment effects are seen for those students who are enrolled part-time at community colleges. We find little evidence of negative effects on the attainment of certificates or degrees, suggesting that increases in the minimum wage are unlikely to divert students from degree attainment.
Keywords: Minimum wage; College enrollment; Community colleges; Educational attainment
JEL Codes: I23; J24
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| minimum wage increase (J38) | decrease in enrollment at public two-year institutions (I23) |
| minimum wage increase (J38) | sensitivity of part-time community college students (D29) |
| decrease in enrollment at public two-year institutions (I23) | no significant negative effects on attainment of certificates or degrees (I24) |
| minimum wage increase (J38) | decrease in enrollment (I21) |
| weaker ties to postsecondary institutions (I23) | higher likelihood to withdraw from education (I21) |