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What Explains Trends in Labor Supply Among U.S. Undergraduates?

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  • Scott-Clayton, Judith

Abstract

Recent cohorts of college enrollees are more likely to work, and work substantially more, than those in the past. October Current Population Survey data reveal that average labor supply among 18- to 22-year-old, full-time undergraduates nearly doubled between 1970 and 2000, rising from six hours to 11 hours per week. In 2000 over half of these "traditional" college students were working for pay in the reference week, and those who worked at all worked an average of 22 hours per week. After 2000, labor supply leveled off and then fell abruptly in the wake of the Great Recession to an average of eight hours per week in 2009. This paper considers several explanations for the long-term trend of rising employment — including changes in demographic composition and rising tuition costs — and considers whether the upward trend is likely to resume when economic conditions improve.

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  • Scott-Clayton, Judith, 2012. "What Explains Trends in Labor Supply Among U.S. Undergraduates?," National Tax Journal, National Tax Association;National Tax Journal, vol. 65(1), pages 181-210, March.
  • Handle: RePEc:ntj:journl:v:65:y:2012:i:1:p:181-210
    DOI: 10.17310/ntj.2012.1.07
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    2. Barr, Andrew & Turner, Sarah, 2015. "Out of work and into school: Labor market policies and college enrollment during the Great Recession," Journal of Public Economics, Elsevier, vol. 124(C), pages 63-73.
    3. Kurlaender, Michal & Jackson, Jacob & Howell, Jessica S. & Grodsky, Eric, 2014. "College course scarcity and time to degree," Economics of Education Review, Elsevier, vol. 41(C), pages 24-39.
    4. Christian Belzil & Jörgen Hansen, 2020. "Reconciling Changes in Wage Inequality With Changes in College Selectivity Using a Behavioral Model," CIRANO Working Papers 2020s-36, CIRANO.
    5. Romel C. Mutya & Immar Jun R. Geverola & Alfredo C. Cano Jr. & Renato V. Friolo, 2022. "Coping with uncertainties: Unveiling the lived experiences of working students in the new normal," HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - SOCIAL SCIENCES, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 12(1), pages 112-129.
    6. Jeffrey T. Denning & Eric R. Eide & Kevin J. Mumford & Richard W. Patterson & Merrill Warnick, 2022. "Why Have College Completion Rates Increased?," American Economic Journal: Applied Economics, American Economic Association, vol. 14(3), pages 1-29, July.
    7. Christian Belzil & Jörgen Hansen, 2020. "The evolution of the US family income–schooling relationship and educational selectivity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 35(7), pages 841-859, November.
    8. Scott-Clayton, Judith & Minaya, Veronica, 2016. "Should student employment be subsidized? Conditional counterfactuals and the outcomes of work-study participation," Economics of Education Review, Elsevier, vol. 52(C), pages 1-18.
    9. Vivian Yuen Ting Liu, 2020. "Is School Out for the Summer? The Impact of Year-Round Pell Grants on Academic and Employment Outcomes of Community College Students," Education Finance and Policy, MIT Press, vol. 15(2), pages 241-269, Spring.
    10. Adam M. Lavecchia & Heidi Liu & Philip Oreopoulos, 2014. "Behavioral Economics of Education: Progress and Possibilities," NBER Working Papers 20609, National Bureau of Economic Research, Inc.
    11. Darolia, Rajeev, 2014. "Working (and studying) day and night: Heterogeneous effects of working on the academic performance of full-time and part-time students," Economics of Education Review, Elsevier, vol. 38(C), pages 38-50.
    12. Christian Belzil & Jörgen Hansen & Xingfei Liu, 2022. "The Evolution of Inequality in Education Trajectories and Graduation Outcomes in the US," Working Papers 2022-12, Center for Research in Economics and Statistics.
    13. Denning, Jeffrey T. & Eide, Eric R. & Mumford, Kevin J. & Sabey, Daniel J., 2022. "Decreasing time to baccalaureate degree in the United States," Economics of Education Review, Elsevier, vol. 90(C).
    14. Jeffrey T. Denning, 2019. "Born under a Lucky Star: Financial Aid, College Completion, Labor Supply, and Credit Constraints," Journal of Human Resources, University of Wisconsin Press, vol. 54(3), pages 760-784.
    15. Rajeev Darolia, 2015. "Income-Tested College Financial Aid and Labor Disincentives," Upjohn Working Papers 15-248, W.E. Upjohn Institute for Employment Research.
    16. Aina, Carmen & Baici, Eliana & Casalone, Giorgia & Pastore, Francesco, 2022. "The determinants of university dropout: A review of the socio-economic literature," Socio-Economic Planning Sciences, Elsevier, vol. 79(C).

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