The direct, skill-enhancing effect of high school employment is difficult t
o identify because high school work effort is correlated with curricular ch
oices, postsecondary schooling and work effort, and many other observed and
unobserved factors. This study uses data for male, high school graduates t
o estimate a wage model in which detailed measures of high school coursewor
k and post-school work experience are included among the extensive array of
covariates. Instrumental variable methods are used to contend with the cor
relation between high school employment and unobserved characteristics. The
direct effect of high school employment on subsequent wages proves to be s
mall and relatively short-lived. Young men who work in high school gain add
itional, "indirect" wage benefits by taking vocational courses and gaining
above-average work experience after graduation. (C) 1999 Elsevier Science L
td. All rights reserved.