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The Long Term Impacts of Compulsory Schooling: Evidence from a Natural Experiment in School Leaving Dates

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  • Emilia Del Bono
  • Fernando Galindo-Rueda

Abstract

This paper investigates a unique feature of the English educational system to estimate the causal effect of compulsory schooling on labour market outcomes. We examine school leaving rules that allow for discrete variation in exit dates by date of birth within school cohorts. This natural experiment enables a regression discontinuity design that differences out confounding factors discussed in the literature. Individuals compelled to stay in school for as little as three months longer than their classmates tend to achieve significantly higher qualification levels and experience better labour market outcomes. Our analysis of variation of impacts by age of compulsory schooling allows us to provide valuable new insights on the role of education credentials in the labour market.

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File URL: http://cee.lse.ac.uk/ceedps/ceedp74.pdf
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Bibliographic Info

Paper provided by Centre for the Economics of Education, LSE in its series CEE Discussion Papers with number 0074.

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Date of creation: Jan 2007
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Handle: RePEc:cep:ceedps:0074

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Web page: http://cee.lse.ac.uk/publications.htm

Related research

Keywords: Education qualifications; School leaving age; Instrumental variables; Labour market impacts;

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References

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  1. Arnaud Chevalier, 2004. "Parental Education and Childs Education: A Natural Experiment," CEE Discussion Papers 0040, Centre for the Economics of Education, LSE.
  2. Arnaud Chevalier & Colm Harmon & Ian Walker & Yu Zhu, 2004. "Does Education Raise Productivity, or Just Reflect it?," Economic Journal, Royal Economic Society, vol. 114(499), pages F499-F517, November.
  3. Rice, P.G. & McVicar, D., 1996. "Participation in full-time further eduction in England and Wales: an analysis of post-war trends," Discussion Paper Series In Economics And Econometrics 9604, Economics Division, School of Social Sciences, University of Southampton.
  4. Richard Blundell & Lorraine Dearden & Barbara Sianesi, 2003. "Evaluating the impact of education on earnings in the UK: Models, methods and results from the NCDS," IFS Working Papers W03/20, Institute for Fiscal Studies.
  5. Lorraine Dearden, 1998. "Ability, families, education and earnings in Britain," IFS Working Papers W98/14, Institute for Fiscal Studies.
  6. Callan, T. & Harmon, C.P., 1997. "The Economic Return to Schooling in Ireland," Papers 97/23, College Dublin, Department of Political Economy-.
  7. Vegard Skirbekk & Hans-Peter Kohler & Alexia Prskawetz, 2004. "Birth month, school graduation, and the timing of births and marriages," Demography, Springer, vol. 41(3), pages 547-568, August.
  8. John Bound & David A. Jaeger, 1996. "On the Validity of Season of Birth as an Instrument in Wage Equations: A Comment on Angrist & Krueger's "Does Compulsory School Attendance Affect Scho," NBER Working Papers 5835, National Bureau of Economic Research, Inc.
  9. Kevin Milligan & Enrico Moretti & Philip Oreopoulos, 2003. "Does Education Improve Citizenship? Evidence from the U.S. and the U.K," NBER Working Papers 9584, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Dan Anderberg & Yu Zhu, 2010. "The Effect of Education on Marital Status and Partner Characteristics: Evidence from the UK," CESifo Working Paper Series 3104, CESifo Group Munich.
  2. Alexander Murray & Andrew Sharpe, 2011. "Human Capital and Productivity in British Columbia," CSLS Research Reports 2011-10, Centre for the Study of Living Standards.
  3. Nakamura, R.;, 2012. "Intergenerational effect of schooling and childhood overweight," Health, Econometrics and Data Group (HEDG) Working Papers 12/02, HEDG, c/o Department of Economics, University of York.

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