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Driving, Dropouts, and Drive-Throughs: Mobility Restrictions and Teen Human Capital

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  • Bostwick, Valerie

    (Kansas State University)

  • Severen, Christopher

    (Federal Reserve Bank of Philadelphia)

Abstract

We provide evidence that graduated driver licensing (GDL) laws, originally intended to improve public safety, impact human capital accumulation. Many teens use automobiles to access both school and employment. Because school and work decisions are interrelated, the effects of automobile-specific mobility restrictions are ambiguous. Using a novel triple-difference research design, we find that restricting mobility significantly reduces high school dropout rates and teen employment. We develop a multiple discrete choice model that rationalizes unintended consequences and reveals that school and work are weak complements. Thus, improved educational outcomes reflect decreased access to leisure activities rather than reduced labor market access.

Suggested Citation

  • Bostwick, Valerie & Severen, Christopher, 2023. "Driving, Dropouts, and Drive-Throughs: Mobility Restrictions and Teen Human Capital," IZA Discussion Papers 16183, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16183
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    More about this item

    Keywords

    mobility restrictions; human capital; teen employment; graduated driver licensing; multiple discreteness;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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