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The Impact of Local Labor Market Conditions on the Demand for Education: Evidence from Indian Casinos

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  • William Evans
  • Wooyoung Kim

Abstract

Using restricted-use data from the 1990 and 2000 Census long-form, we analyze the impact of local labor market conditions on the demand for education using the economic shock produced by the opening of a new casino on an Indian reservation as the identifying event. Federal legislation in 1988 allowed Indian tribes to open casinos in many states and since then, over 400 casinos have opened, 240 of which have Las Vegas-style games. We demonstrate that the opening of a casino increased the employment and wages of low-skilled workers. Young adults responded by dropping out of high school and reducing college enrollment rates, even though many tribes have generous college tuition subsidy programs.

Suggested Citation

  • William Evans & Wooyoung Kim, 2006. "The Impact of Local Labor Market Conditions on the Demand for Education: Evidence from Indian Casinos," Working Papers 06-14, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:06-14
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    File URL: https://www2.census.gov/ces/wp/2006/CES-WP-06-14.pdf
    File Function: First version, 2006
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    References listed on IDEAS

    as
    1. Pedro Carneiro & James J. Heckman, 2002. "The Evidence on Credit Constraints in Post--secondary Schooling," Economic Journal, Royal Economic Society, vol. 112(482), pages 705-734, October.
    2. Hilary Williamson Hoynes, 2000. "Local Labor Markets And Welfare Spells: Do Demand Conditions Matter?," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 351-368, August.
    3. Rees, Daniel I. & Mocan, H. Naci, 1997. "Labor market conditions and the high school dropout rate: Evidence from New York State," Economics of Education Review, Elsevier, vol. 16(2), pages 103-109, April.
    4. Sandra E. Black & Amir Sufi, 2002. "Who Goes to College? Differential Enrollment by Race and Family Background," NBER Working Papers 9310, National Bureau of Economic Research, Inc.
    5. William N. Evans & Julie H. Topoleski, 2002. "The Social and Economic Impact of Native American Casinos," NBER Working Papers 9198, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Patrick Reilly, 2016. "Bank Branching Deregulation and High School Graduation," Working Papers 16-29, Department of Economics, West Virginia University.
    2. Reilly, Patrick A., 2020. "The effects of credit on high school graduation: Evidence from U.S. bank branching deregulation," The Quarterly Review of Economics and Finance, Elsevier, vol. 75(C), pages 109-119.
    3. Randall K. Q. Akee & Katherine A. Spilde & Jonathan B. Taylor, 2015. "The Indian Gaming Regulatory Act and Its Effects on American Indian Economic Development," Journal of Economic Perspectives, American Economic Association, vol. 29(3), pages 185-208, Summer.
    4. Randall K. Q. Akee & William E. Copeland & Gordon Keeler & Adrian Angold & E. Jane Costello, 2010. "Parents' Incomes and Children's Outcomes: A Quasi-experiment Using Transfer Payments from Casino Profits," American Economic Journal: Applied Economics, American Economic Association, vol. 2(1), pages 86-115, January.
    5. Gregg, Matthew T., 2018. "The long-term effects of American Indian boarding schools," Journal of Development Economics, Elsevier, vol. 130(C), pages 17-32.
    6. Laurel Wheeler, 2019. "Property Rights, Place-Based Policies, and Economic Development," Working Papers 19-16, Center for Economic Studies, U.S. Census Bureau.

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