Research consistently demonstrates a positive correlation between hours of employment and problem behavior for adolescents. In response, the National Research Council (1998) proposed limits on youth work involvement, and its recommendation forms the basis for proposed legislation to amend federal child labor provisions. An unanticipated consequence may be to increase the amount of time that youths spend in the informal labor market because child labor laws only govern youth employment in the formal labor market. In this article, the authors attempt to address this policy implication and fill a gap in the extant literature by examining the impact of both formal and informal employment on delinquency and substance use. Because work patterns tend to be very different by gender and race or ethnicity, the authors estimate separate models for these subgroups. The authors use longitudinal data to deal with the possibility that there are unobserved differences between those that work and those that do not.
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