Do higher real minimum wages lead to more high school dropouts?
S.O. Crofton, W.L. Anderson and E.C. Rawe American Journal of Economics and Sociology, vol. 68, 2009, p.445-464 This study explores whether higher levels of the real minimum wage have differential effects on high school dropout rates across pupils of varying ethnicities in the USA (Whites, African Americans, Asians and Hispanics). Using a panel of data across Maryland counties and annual observations in 1993-2004, the research found higher real minimum wages to be associated with higher dropout rates for Hispanic pupils, but not for other ethnic groups. Two plausible sociological explanations for these findings are offered: • Hispanic pupils’ dropout choices appear to be more responsive to a wider variety of economic influences than those of other ethnic groups • Hispanic pupils may expect to be paid an hourly wage (and perhaps the minimum wage) instead of holding a salaried job to a greater extent than students of other ethnicities.
