ABSTRACT
An economics-based approach to students' time allocation suggests that students consider the tradeoffs involved with work versus study time in terms of current income and future earnings capacity, as well as their health consequences. The prime motivation of students to work in paid jobs is largely attributed to the cost of higher education and other relevant expenses outpacing household real income gains, parental transfers and government subsidies. Employment can be a dual edged sword. Students recognize that working full-time may not only compromise their academic progress, but may also limit their ability to engage in other extracurricular activities such as civic learning and community service. However, virtually all theoretical and empirical analyses of labour supply behaviour treat the time allocation decision as a sequential one. The empirical specification begins with a basic ordinary least square (OLS) regression model. One alternative to direct regulation would be creating a wage premium for student work, analogous to a shift differential or overtime penalty.
