Youth Early Employment and Behavior Problems: Human Capital and Social Network Pathways to Adulthood

Abstract

We examine the relationship between early youth employment and behavior problems and ask whether this relationship differs by race, job quality, or work intensity. Drawing on Panel Study of Income Dynamics data, we depict the employment patterns of American youth aged 12 through 18 and test conflicting hypotheses about mediating mechanisms through which youth employment shapes children’s behavior. Results show that employment is associated with fewer behavior problems but only when the jobs offer opportunities for human capital development and only when working moderate hours. We find significant differences in employment rates and job characteristics between black and white youth. High-quality employment has a stronger impact on black than on white youth, and the positive effect of work is mediated by positive peer influence. Findings support social and human capital theories and, more broadly, the social network/role model explanation for adolescent behavior.