Student Debt and Labor Market Outcomes

Daniels, G. E., Jr. & Smythe, A. (2019). Student Debt and Labor Market Outcomes. AEA Papers and Proceedings, 109 : 171-75.

9 Pages Posted: 16 Oct 2017 Last revised: 17 Jul 2020

See all articles by Gerald Daniels

Gerald Daniels

Howard University

Andria Smythe

Howard University - Department of Economics

Date Written: March 12, 2018

Abstract

We study the impact of student debt on various labor market outcomes, namely, labor market income, hourly wages, hours worked, and probability of full-time employment. Using data from the NLSY97 surveys and a difference-in-difference approach, we find statistically significant differences in labor market outcomes for individuals who received a student loan versus those who received no student loan. Our findings are that the difference in income post-college enrollment is 8-9 percent higher for individuals that received a student loan relative to individuals that did not. We find evidence that this higher income is due to higher work hours rather than higher wage rates. We also find that the difference in full-time employment, post-college, is 5 percentage points higher for individuals that received a student loan when compared to those that did not.

Keywords: Labor Market Outcomes, Student Loans, NLSY, Income

JEL Classification: I2, I20, I23, J01, J24

Suggested Citation

Daniels, Gerald and Smythe, Andria, Student Debt and Labor Market Outcomes (March 12, 2018). Daniels, G. E., Jr. & Smythe, A. (2019). Student Debt and Labor Market Outcomes. AEA Papers and Proceedings, 109 : 171-75., Available at SSRN: https://ssrn.com/abstract=3052040 or http://dx.doi.org/10.2139/ssrn.3052040

Gerald Daniels (Contact Author)

Howard University ( email )

2400 Sixth St NW
Washington, DC 20059
United States
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(202) 806-4896 (Fax)

HOME PAGE: http://gerald-daniels.com/

Andria Smythe

Howard University - Department of Economics ( email )

Washington, DC 20059
United States

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