Using data from the Beginning Postsecondary Students Longitudinal Study of 1996, this article explores the effect of economic resources on the paid work experiences and living arrangements of first-year college students. Students from low-income families are more likely to work for school-related expenses and to live at home during the first year of college—cost-saving strategies that, in some cases, impede their chances of continuing into the second year. Students who work more than 20 hours a week and who live at home are more likely to leave school during the first year than are those who work 20 hours a week or less and who reside on campus. Employment and living arrangements both play a strong role in shaping the transition to college, beyond background characteristics and academic preparation.
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