Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/278881 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16183
Publisher: 
Institute of Labor Economics (IZA), Bonn
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.
Subjects: 
mobility restrictions
human capital
teen employment
graduated driver licensing
multiple discreteness
JEL: 
I20
J24
J22
C35
R48
Document Type: 
Working Paper

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