IDEAS home Printed from https://ideas.repec.org/p/ces/ifowps/_313.html
   My bibliography  Save this paper

The Effect of Compulsory Schooling on Skills: Evidence from a Reform in Germany

Author

Listed:
  • Franziska Hampf

Abstract

Based on high-quality skill data from PIAAC, this paper provides evidence on the effect of schooling on labor-market relevant cognitive skills. For identification, I exploit the staggered introduction of a compulsory ninth grade in basic track schools across German states, as well as a simultaneous reform that introduced short school years to harmonize the start of the school year nation-wide. Instrumental-variable results suggest that the additional year of compulsory schooling increased numeracy skills of basic-track students by about 0.2 standard deviations. Using superior skill data, the results contrast with previous evidence of zero skill effects of compulsory schooling in Germany

Suggested Citation

  • Franziska Hampf, 2019. "The Effect of Compulsory Schooling on Skills: Evidence from a Reform in Germany," ifo Working Paper Series 313, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
  • Handle: RePEc:ces:ifowps:_313
    as

    Download full text from publisher

    File URL: https://www.ifo.de/DocDL/wp-2019-313-hampf-compulsory-schooling.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Falck, Oliver & Heimisch-Roecker, Alexandra & Wiederhold, Simon, 2021. "Returns to ICT skills," Research Policy, Elsevier, vol. 50(7).
    2. Jörn-Steffen Pischke, 2007. "The Impact of Length of the School Year on Student Performance and Earnings: Evidence From the German Short School Years," Economic Journal, Royal Economic Society, vol. 117(523), pages 1216-1242, October.
    3. Jörn-Steffen Pischke & Till von Wachter, 2008. "Zero Returns to Compulsory Schooling in Germany: Evidence and Interpretation," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 592-598, August.
    4. Philip Oreopoulos, 2006. "Estimating Average and Local Average Treatment Effects of Education when Compulsory Schooling Laws Really Matter," American Economic Review, American Economic Association, vol. 96(1), pages 152-175, March.
    5. Aakvik, Arild & Salvanes, Kjell G. & Vaage, Kjell, 2010. "Measuring heterogeneity in the returns to education using an education reform," European Economic Review, Elsevier, vol. 54(4), pages 483-500, May.
    6. Ichino, Andrea & Winter-Ebmer, Rudolf, 1999. "Lower and upper bounds of returns to schooling: An exercise in IV estimation with different instruments," European Economic Review, Elsevier, vol. 43(4-6), pages 889-901, April.
    7. Julien Grenet, 2013. "Is Extending Compulsory Schooling Alone Enough to Raise Earnings? Evidence from French and British Compulsory Schooling Laws," Post-Print halshs-00754526, HAL.
    8. Oosterbeek, Hessel & Webbink, Dinand, 2007. "Wage effects of an extra year of basic vocational education," Economics of Education Review, Elsevier, vol. 26(4), pages 408-419, August.
    9. Elizabeth U. Cascio & Ethan G. Lewis, 2006. "Schooling and the Armed Forces Qualifying Test: Evidence from School-Entry Laws," Journal of Human Resources, University of Wisconsin Press, vol. 41(2).
    10. Cygan-Rehm, Kamila, 2018. "Is additional schooling worthless? Revising the zero returns to compulsory schooling in Germany," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181528, Verein für Socialpolitik / German Economic Association.
    11. Alberto Abadie & Susan Athey & Guido W Imbens & Jeffrey M Wooldridge, 2023. "When Should You Adjust Standard Errors for Clustering?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 138(1), pages 1-35.
    12. Paul J. Devereux & Robert A. Hart, 2010. "Forced to be Rich? Returns to Compulsory Schooling in Britain," Economic Journal, Royal Economic Society, vol. 120(549), pages 1345-1364, December.
    13. Lance Lochner & Enrico Moretti, 2004. "The Effect of Education on Crime: Evidence from Prison Inmates, Arrests, and Self-Reports," American Economic Review, American Economic Association, vol. 94(1), pages 155-189, March.
    14. Buscha, Franz & Dickson, Matt, 2012. "The raising of the school leaving age: Returns in later life," Economics Letters, Elsevier, vol. 117(2), pages 389-393.
    15. Card, David & Krueger, Alan B, 1992. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 1-40, February.
    16. Nicole Schneeweis & Vegard Skirbekk & Rudolf Winter-Ebmer, 2014. "Does Education Improve Cognitive Performance Four Decades After School Completion?," Demography, Springer;Population Association of America (PAA), vol. 51(2), pages 619-643, April.
    17. Daniel A. Kamhöfer & Hendrik Schmitz, 2016. "Reanalyzing Zero Returns to Education in Germany," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 31(5), pages 912-919, August.
    18. Harmon, Colm & Walker, Ian, 1995. "Estimates of the Economic Return to Schooling for the United Kingdom," American Economic Review, American Economic Association, vol. 85(5), pages 1278-1286, December.
    19. O. Ashenfelter & D. Card (ed.), 1999. "Handbook of Labor Economics," Handbook of Labor Economics, Elsevier, edition 1, volume 3, number 3.
    20. Dolton, Peter & Sandi, Matteo, 2017. "Returning to returns: revisiting the British education evidence," LSE Research Online Documents on Economics 85152, London School of Economics and Political Science, LSE Library.
    21. Kemptner, Daniel & Jürges, Hendrik & Reinhold, Steffen, 2011. "Changes in compulsory schooling and the causal effect of education on health: Evidence from Germany," Journal of Health Economics, Elsevier, vol. 30(2), pages 340-354, March.
    22. Thomas Siedler, 2010. "Schooling and Citizenship in a Young Democracy: Evidence from Postwar Germany," Scandinavian Journal of Economics, Wiley Blackwell, vol. 112(2), pages 315-338, June.
    23. James Banks & Fabrizio Mazzonna, 2012. "The Effect of Education on Old Age Cognitive Abilities: Evidence from a Regression Discontinuity Design," Economic Journal, Royal Economic Society, vol. 122(560), pages 418-448, May.
    24. Adriana Lleras-Muney, 2005. "The Relationship Between Education and Adult Mortality in the United States," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(1), pages 189-221.
    25. Sascha BECKER & Frank SIEBERN-THOMAS, 2001. "Returns to Education in Germany: A Variable Treatment Intensity Approach," Economics Working Papers ECO2001/09, European University Institute.
    26. Julien Grenet, 2013. "Is Extending Compulsory Schooling Alone Enough to Raise Earnings? Evidence from French and British Compulsory Schooling Laws," Scandinavian Journal of Economics, Wiley Blackwell, vol. 115(1), pages 176-210, January.
    27. Dolton, Peter & Sandi, Matteo, 2017. "Returning to returns: Revisiting the British education evidence," Labour Economics, Elsevier, vol. 48(C), pages 87-104.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Josefine Koebe & Jan Marcus, 2020. "The Impact of the Length of Schooling on the Timing of Family Formation," Discussion Papers of DIW Berlin 1896, DIW Berlin, German Institute for Economic Research.
    2. Drewek, Peter, 2020. "Bildungsdefizite coronabedingter Schulschließungen? Eine bildungshistorische Analyse," ZEW Discussion Papers 20-073, ZEW - Leibniz Centre for European Economic Research.
    3. Katharina Werner & Ludger Woessmann, 2021. "The Legacy of Covid-19 in Education," CESifo Working Paper Series 9358, CESifo.
    4. Ardington, Cally & Wills, Gabrielle & Kotze, Janeli, 2021. "COVID-19 learning losses: Early grade reading in South Africa," International Journal of Educational Development, Elsevier, vol. 86(C).
    5. Kamila Cygan‐Rehm, 2022. "Are there no wage returns to compulsory schooling in Germany? A reassessment," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 37(1), pages 218-223, January.
    6. Kamila Cygan-Rehm, 2022. "Lifetime Consequences of Lost Instructional Time in the Classroom: Evidence from Shortened School Years," CESifo Working Paper Series 9892, CESifo.
    7. Ludger Wößmann, 2020. "Follow-up Costs of Not Learning: What We Can Learn from Research on Coronavirus-Related School Closures," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 73(06), pages 38-44, June.
    8. Silke Anger & Malte Sandner & Alexander M. Danzer & Axel Plünnecke & Olaf Köller & Enzo Weber & Samuel Mühlemann & Harald Pfeifer & Bernhard Wittek, 2020. "School Closures, Lack of Apprenticeships, No Jobs: Generation without a Future?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 73(09), pages 03-24, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Daniel A. Kamhöfer & Hendrik Schmitz, 2013. "Analyzing Zero Returns to Education in Germany – Heterogeneous Eff ects and Skill Formation," Ruhr Economic Papers 0446, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    2. Daniel A. Kamhöfer & Hendrik Schmitz, 2013. "Analyzing Zero Returns to Education in Germany: Heterogeneous Effects and Skill Formation," SOEPpapers on Multidisciplinary Panel Data Research 598, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Cygan-Rehm, Kamila, 2018. "Is additional schooling worthless? Revising the zero returns to compulsory schooling in Germany," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181528, Verein für Socialpolitik / German Economic Association.
    4. repec:zbw:rwirep:0446 is not listed on IDEAS
    5. de New, Sonja C. & Schurer, Stefanie & Sulzmaier, Dominique, 2021. "Gender differences in the lifecycle benefits of compulsory schooling policies," European Economic Review, Elsevier, vol. 140(C).
    6. Gregory Clark & Christian Abildgaard Nielsen, 2024. "The Returns to Education: A Meta-study," Working Papers 0249, European Historical Economics Society (EHES).
    7. Tony Beatton & Michael P. Kidd & Matteo Sandi, 2020. "School indiscipline and crime," CEP Discussion Papers dp1727, Centre for Economic Performance, LSE.
    8. Hofmarcher, Thomas, 2021. "The effect of education on poverty: A European perspective," Economics of Education Review, Elsevier, vol. 83(C).
    9. Cummins, Neil, 2022. "The Causal Effects of Education on Age at Marriage and Marital Fertility," CEPR Discussion Papers 17398, C.E.P.R. Discussion Papers.
    10. Martin Fischer & Martin Karlsson & Therese Nilsson & Nina Schwarz, 2020. "The Long-Term Effects of Long Terms – Compulsory Schooling Reforms in Sweden," Journal of the European Economic Association, European Economic Association, vol. 18(6), pages 2776-2823.
    11. Stanislav Avdeev, 2020. "Zero Returns To Higher Education: Evidence From A Natural Experiment," HSE Working papers WP BRP 236/EC/2020, National Research University Higher School of Economics.
    12. Jörn-Steffen Pischke & Till von Wachter, 2008. "Zero Returns to Compulsory Schooling in Germany: Evidence and Interpretation," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 592-598, August.
    13. Dolton, Peter & Sandi, Matteo, 2017. "Returning to returns: revisiting the British education evidence," LSE Research Online Documents on Economics 85152, London School of Economics and Political Science, LSE Library.
    14. Meyer, Andrew G., 2017. "The impact of education on political ideology: Evidence from European compulsory education reforms," Economics of Education Review, Elsevier, vol. 56(C), pages 9-23.
    15. Daniel Gray & Alberto Montagnoli & Mirko Moro, 2017. "Does education improve financial outcomes? Quasi-experimental evidence from Britain," Working Papers 2017010, The University of Sheffield, Department of Economics.
    16. Kamila Cygan‐Rehm, 2022. "Are there no wage returns to compulsory schooling in Germany? A reassessment," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 37(1), pages 218-223, January.
    17. Seeun Jung, 2015. "Does education affect risk aversion? Evidence from the British education reform," Applied Economics, Taylor & Francis Journals, vol. 47(28), pages 2924-2938, June.
    18. Tatjana Begerow & Hendrik Jürges, 2022. "Does compulsory schooling affect health? Evidence from ambulatory claims data," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 23(6), pages 953-968, August.
    19. Paul J. Devereux & Robert A. Hart, 2010. "Forced to be Rich? Returns to Compulsory Schooling in Britain," Economic Journal, Royal Economic Society, vol. 120(549), pages 1345-1364, December.
    20. Fischer, Martin & Karlsson, Martin & Nilsson, Therese & Schwarz, Nina, 2016. "The Sooner the Better? Compulsory Schooling Reforms in Sweden," IZA Discussion Papers 10430, Institute of Labor Economics (IZA).
    21. Lepinteur, Anthony & Nieto, Adrìan, 2021. "All about the money ? The gendered effect of education on industrial and occupational sorting," CEPREMAP Working Papers (Docweb) 2109, CEPREMAP.

    More about this item

    Keywords

    Returns to education; compulsory schooling reform; skills; PIAAC;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ces:ifowps:_313. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/ifooode.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.