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The Effects of School Entry Laws on Educational Attainment and Starting Wages in an Early Tracking System

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  • Martina Zweimuller

Abstract

Empirical evidence indicates that relative age, which is determined by date of birth and the school entry cutoff date, has a causal effect on track choice. Using a sample of male labor market entrants drawn from Austrian register data, I analyze whether the initial assignment to different school tracks has persistent effects on educational attainment and earnings in the first years of the career. I estimate the reduced-form effect of the school entry law on starting wages and find a wage penalty of 1.1-2.0 percent for students born in August (the youngest) compared to students born in September (the oldest). The analysis of educational attainment shows that significant differences exist in the type of education. Younger students are more likely to pursue an apprenticeship and less likely to have higher education. After five years of labor market experience, the wage penalty amounts to 0.8-1.1 percent, suggesting a persistent (albeit decreasing) negative effect of the school entry rule on earnings.

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  • Martina Zweimuller, 2013. "The Effects of School Entry Laws on Educational Attainment and Starting Wages in an Early Tracking System," Annals of Economics and Statistics, GENES, issue 111-112, pages 141-169.
    • Handle: RePEc:adr:anecst:y:2013:i:111-112:p:141-169
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    2. Fumarco, Luca & Baert, Stijn, 2018. "Younger and Dissatisfied? Relative Age and Life-satisfaction in Adolescence," MPRA Paper 89968, University Library of Munich, Germany.
    3. YAMAGUCHI Shintaro & ITO Hirotake & NAKAMURO Makiko, 2020. "Month-of-Birth Effects on Skills and Skill Formation," Discussion papers 20079, Research Institute of Economy, Trade and Industry (RIETI).
    4. Shintaro Yamaguchi & Hirotake Ito & Makiko Nakamuro, 2020. "Month-of-Birth Effects on Skills and Skill Formation," RF Berlin - CReAM Discussion Paper Series 2015, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    5. Krause-Pilatus, Annabelle & Schüller, Simone, 2014. "Evidence and Persistence of Education Inequality in an Early-Tracking System: The German Case," IZA Discussion Papers 8545, Institute of Labor Economics (IZA).
    6. Guo, Chuanyi & Wang, Xuening & Meng, Chen, 2023. "Does the early bird catch the worm? Evidence and interpretation on the long-term impact of school entry age in China," China Economic Review, Elsevier, vol. 77(C).
    7. Shintaro Yamaguchi & Hirotake Ito & Makiko Nakamuro, 2020. "Month-of-Birth Effects on Skills and Skill Formation," CIRJE F-Series CIRJE-F-1153, CIRJE, Faculty of Economics, University of Tokyo.
    8. Peña, Pablo A., 2017. "Creating winners and losers: Date of birth, relative age in school, and outcomes in childhood and adulthood," Economics of Education Review, Elsevier, vol. 56(C), pages 152-176.

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    More about this item

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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