Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/236209 
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14178
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper investigates the impact of the minimum wage on individuals' schooling decisions and the type of human capital acquired by students. Using Canadian longitudinal data, we explore 136 minimum wage amendments across provincial jurisdictions, and find three novel results. First, the minimum wage affects both the quantity and the type of human capital acquired by individuals. High minimum wages stimulate the accumulation of occupation-specific human capital at community colleges but discourage enrollment in academic programs offered by universities. Quantitatively, a 10% increase in the minimum wage increases community-college enrollment by 6% and reduces university enrollment by 5%. Second, high minimum wages strengthen the link between parental background and children educational attainment, worsening the university participation gap between individuals with high and low parental education. Finally, minimum wages also affect whether students dropout of post-secondary education or return to school later in life as mature students.
Subjects: 
minimum wage
post-secondary enrollment
post-secondary dropouts
JEL: 
J31
J38
J24
I23
Document Type: 
Working Paper

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