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  5. Student Debt and Labor Market Outcomes

AEA Papers and Proceedings

ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)

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Student Debt and Labor Market Outcomes

  • Gerald Eric Daniels Jr.
  • Andria Smythe
AEA Papers and Proceedings
vol. 109, May 2019
(pp. 171–75)
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Abstract

We study the impact of student debt on various labor market outcomes, namely, income, hourly wages, and hours worked. Using the NLSY97 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. We find that the difference in post- versus pre-college income is 8-9 percent higher for individuals that received a student loan relative to individuals who received no student loan. Further, we find evidence that this higher income is due to higher work hours.

Citation

Daniels, Gerald Eric Jr., and Andria Smythe. 2019. "Student Debt and Labor Market Outcomes." AEA Papers and Proceedings, 109: 171–75. DOI: 10.1257/pandp.20191087

Additional Materials

JEL Classification

  • D14 Household Saving; Personal Finance
  • I22 Educational Finance; Financial Aid
  • I23 Higher Education; Research Institutions
  • J22 Time Allocation and Labor Supply
  • J31 Wage Level and Structure; Wage Differentials