Putting College First: How Social and Financial Capital Impact Labor Market Participation Among Low-Income Undergraduates James Benson Sara Goldrick-Rab Wisconsin Scholars Longitudinal Study July 8, 2011

Twenty-first Century College Students and Work Participation A majority of undergraduates work despite evidence that working while in college is associated with lower rates of degree completion. Non-experimental studies indicate that work participation itself may have positive benefits, but extensive work (>20 hours/week) associated with stopping out and dropping out. Over the last 40 years, the proportion of students who work extensively has increased.

Why might extensive work affect college success? Work may divert attention from college-related activities, thus impeding the student’s social and academic integration into the college environment (Tinto 1993). Work may take students away from specific activities: academic work; interaction with faculty; academic interaction with peers (study groups) and mentors; social interaction with on-campus peers (formal organizations and informal relations); (Astin 1993). Moderate work may enhance self-esteem and social skills, and positively affect cognitive development through application of these skills to academic endeavors (Pascarella et al.)

Social Background and Work Decisions Higher parental education and income associated with lower rates of extensive work during college, thus facilitating “educationally conducive” conditions for their success (Roksa and Velez 2010). Students in low-wealth families respond to financial strain through a coping strategy (extensive work) that solves short- term problems while creating long-term ones (Bozick 2007). Students may not simply be “hedging their bets” by straddling college and the labor market: even among students with high test scores, lower income is associated with more work hours (Belley and Lochner 2007).

Research Questions and Analytical Strategy Does social capital (parental education) shield children of low- income families from potentially harmful work during college? – Parental education is a crucial part of the propensity to persist (impact presentation). Can the introduction of additional financial resources (the WSG) reduce the incidence of potentially harmful work activities? Analytical Strategy: Survey measures for 2218 participants. Control group sample allows us to compare means for all work outcomes across parental education groups (high school, some college, and college degree). Participant Sample allows us to assess differences across treatment (WSG) and control groups.

Parental Education and Work Participation during Year 1 and Year 2 (Control Group; n=1300) High School (HS) Some College College Degree (BA) BA – HS Year 1 Working (%) † Total hours per week * Working off-campus (%) *** Off-campus hours ** Working extensively (%) † Year 2 Working (%) Total hours per week * Working off-campus (%) * Off-campus hours ** Working extensively (%) **

Impacts of Treatment Assignment on Work Participation (Year 1 and Year 2) for Students from High School, Some College, and Degree Backgrounds (Participants; n=2218) T - CT - C (HS)T - C (SC)T - C (BA) Year 1 Working (%) Total hours per week Working off-campus (%)-2-40 Off-campus hours Working extensively (%) -3 Year 2 Working (%) Total hours per week-1.9*-2.7† Working off-campus (%) Off-campus hours Working extensively (%)

Impacts of Treatment Assignment on Work Participation (Year 2) for 2-year and 4-year Students from High School, Some College, and Degree Backgrounds (n=606; n=1193) T - CT - C (HS)T - C (SC)T - C (BA) Year 2: WTCS Students Working (%) Total hours per week Working off-campus (%) Off-campus hours Working extensively (%) Year 2: UW 4-year students Working (%)-6†-5 -6 Total hours per week-2.1**-2.8**-2.2†-0.9 Working off-campus (%)-6†-10*-60 Off-campus hours-1.8**-2.7*-1.9†-0.4 Working extensively (%)-5*-7*-7†+2

Summary of Results Parental Education: consistent differences across students from HS and BA backgrounds in total work hours, working off-campus, off- campus hours, and working extensively, despite similar percentages of labor market participation. Financial Resources (the WSG): The grant reduced work hours by an average of 1.9 hours/week for students from HS and SC backgrounds. For students from a HS background, the grant offset 60 percent of the social disadvantage (1.9/3.2 * 100) in total work hours. We are more confident of the impacts of the WSG in the UW than WTCS sector. Among university students the WSG plays a clear compensatory role in reducing work hours, off-campus hours, and extensive work for students from families where the highest degree is a high school diploma.