This paper examines the impact of state merit-aid programs on teen and young adult labor market outcomes. Merit-aid programs reduce the price of attending an in-state public college or university for high-achieving students and have the potential to influence students’ allocation of time and effort between labor market activities and human capital development. We examine the variation in the influence of these programs based on their generosity, both in the amount of aid provided to a recipient and the percent of students who are recipients of aid. We also provide some of the first estimates of the influence of these programs on labor market outcomes prior to completed schooling. Our results suggest that more generous programs influence labor market outcomes, but are not a significant cause in the decline in teenage labor force participation in recent decades.