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School Performance and the Youth Labor Market

Kevin M. Murphy and Sam Peltzman
Journal of Labor Economics
Vol. 22, No. 2 (April 2004), pp. 299-327
DOI: 10.1086/381251
Stable URL: http://www.jstor.org/stable/10.1086/381251
Page Count: 29
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
School Performance and the Youth Labor Market
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Abstract

We estimate how 1970–90 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.

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