Schools and labor market outcomes

Abstract

This paper reports on an econometric analysis of the relationship between individual school characteristics and the earnings of students who enter the labor force directly from high school, using High School and Beyond data. We conclude that which high school a student goes to makes a difference in annual earnings, but that most of the specific characteristics that account for the differences are not c identifiable. One category of characteristics, school-to-work interventions, however, are predictors: transmitting labor makret information to students, and substantial work-for-pay experience by students while in high school translate into higher earnings. Students who have a large number of work hours have lower grade-point averages, and higher grade-point averages translate into higher earnings. But, for those who do not go on to higher education, the positive direct effect of work experience on future earnings is larger than the negative indirect effect via grade-point average.