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The impact of labor market work and educational tracking on student educational outcomes: Evidence from Taiwan

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  • Huang, Fung-Mey
  • Liao, Jen-Che
  • Yi, Chin-Chun

Abstract

This study empirically investigates how working while enrolled in high school affects educational outcomes, while accounting for self-selected educational tracking. Using a longitudinal survey of Taiwanese youth and exploiting the inter-zip-code geographic variations in youth-preferred industries, we find a negative effect of school-year work on educational achievement, and the negative marginal impact is much stronger for academic-track than for vocational-track students. An exogenous increase in school-year hours worked of 10 hours per week lowers college entrance scores by a 0.117 (0.083) standard deviation for academic-track (vocational-track) students. The negative impact of school-year work tends to be overstated if the endogeneity arising from educational tracking is not acknowledged—with upward biases as large as 16% and 30% for academic- and vocational-track students, respectively. Among subjects, math scores suffer most from working during the school year.

Suggested Citation

  • Huang, Fung-Mey & Liao, Jen-Che & Yi, Chin-Chun, 2020. "The impact of labor market work and educational tracking on student educational outcomes: Evidence from Taiwan," Economics of Education Review, Elsevier, vol. 77(C).
    • Handle: RePEc:eee:ecoedu:v:77:y:2020:i:c:s0272775718307660
    DOI: 10.1016/j.econedurev.2020.101955
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    More about this item

    Keywords

    Early employment; Educational achievement; Educational tracking; Endogeneity; Selection;
    All these keywords.

    JEL classification:

    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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