Raising State Minimum Wages, Lowering Community College Enrollment

While much research attention has focused on the direct labor market effect of minimum wage increases on employment, the impact of changes in the minimum wage on college enrollment may impact educational attainment. Using institutional data on college enrollment and program completion, we find that enrollment falls markedly among students at public two-year institutions in response to increases in the minimum wage. The largest enrollment effects are seen for those students who are enrolled part-time at community colleges. We find little evidence of negative effects on the attainment of certificates or degrees, suggesting that increases in the minimum wage are unlikely to divert students from degree attainment.