This paper analyzes how school year employment affected high school academic performance among a sample of young people surveyed between 1979 and 1983. Regular employment at modest weekly hours was associated with higher grades within each grade level, but between-grade transitions into and out of employment were accompanied by very slight performance declines and gains, respectively. While the average effect of school year employment was quite small, extensive school year employment had a large, statistically significant negative impact on the academic performance of racial minorities. Summer employment did not affect grades, suggesting that school year employment affected grades by “crowding out” study time.
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