High School Graduation, Performance and Earnings

54 Pages Posted: 28 May 2004 Last revised: 12 Nov 2022

See all articles by Andrew Weiss

Andrew Weiss

Boston University - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: April 1985

Abstract

Using data from the Panel Study of Income Dynamics and a proprietary sample of semi-skilled production workers, this paper investigates the reasons for the discontinuous increase in wages associated with graduation from high school. Associated with graduation from high school, we find a discontinuous decrease in a worker's propensities to quit or be absent. However, we do not find that high school graduates have a comparative advantage on production jobs requiring more training, nor, in the PSID sample, are high school graduates assigned to jobs requiring more training. Finally, we find that the wage premium associated with graduation from high school vanishes during severe slumps, periods in which employers are likely to be hoarding labor and in which quits and absences are least important to firms. We conclude from this evidence that the sorting model of education provides a better explanation for the higher wages of high school graduates than does the human capital model.

Suggested Citation

Weiss, Andrew M., High School Graduation, Performance and Earnings (April 1985). NBER Working Paper No. w1595, Available at SSRN: https://ssrn.com/abstract=228040

Andrew M. Weiss (Contact Author)

Boston University - Department of Economics ( email )

270 Bay State Road
Boston, MA 02215
United States
617-353-3086 (Phone)
617-353-1188 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
37
Abstract Views
2,151
PlumX Metrics