What Explains Trends in Labor Supply Among U.S. Undergraduates, 1970-2009?
Recent cohorts of college enrollees are more likely to work, and work substantially more, than those of the past. October CPS data reveal that average labor supply among 18 to 22-year-old full-time undergraduates nearly doubled between 1970 and 2000, rising from 6 hours to 11 hours per week. In 2000 over half of these "traditional" college students were working for pay in the reference week, and the average working student worked 22 hours per week. After 2000, labor supply leveled off and then fell abruptly in the wake of the Great Recession to an average of 8 hours per week in 2009. This paper considers several explanations for the long-term trend of rising employment--including compositional change and rising tuition costs--and considers whether the upward trend is likely to resume when economic conditions improve.
I gratefully acknowledge funding from the National Science Foundation Graduate Research Fellowship program, as well as support from the Malcolm Wiener Center's Multidisciplinary Program on Inequality and Social Policy to develop an earlier version of this paper. All errors are mine. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.