The Impact of Repealing Sunday Closing Laws on Educational Attainment

Adolescents face daily trade-offs between human capital investment, labor, and leisure. This paper exploits state variation in the repeal of Sunday closing laws to examine the impact of a distinct and plausibly exogenous rise in the quantity of competing diversions available to youth on their educational attainment. The results suggest that the repeals led to a significant decline in both years of education and the probability of high school completion. I explore increased employment opportunities and risky behaviors as potential mechanisms. Further, I find a corresponding decline of the repeals on adult wages.