Minimum Wage Policy and Community College Enrollment Patterns

Abstract

In this article, the author studies the effect of the minimum wage on community college enrollment using cross-border variation in state minimum wages. To address spatial correlation in local labor market conditions, schools are paired on either side of state borders based on geographic proximity using the Integrated Postsecondary Education Data System. Comparing paired schools, the author finds a substantial reduction in enrollment at community colleges in areas with a higher minimum wage. This effect is observed only among part-time students, which suggests that the minimum wage primarily affects students at the margin between work and postsecondary education.