A large scale experiment: wages and educational expansion in France
AbstractWe evaluate the wage impact of the strong and rapid increase in schooling levels experienced by the cohorts born after WWII in France. In order to identify the causal effect of education, we exploit the fact that the small group of people graduating from elite education (Grandes Ecoles) remained stable, while the rest of the system experienced tremendous transformation. This provides a well defined control group. Using large scale labor force surveys for the 1990's, we find that the cohorts that received more education have a lower wage gap, relative to Grandes Ecoles. We show that such a large scale experiment measures a social return to schooling even in the presence of signaling, whereas strategies based on quasi-experiments are not necessarily robust to signaling. Our instrumental variable estimation finds returns to schooling very similar to the rest of the literature, which is a strong case against the signaling hypothesis.
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Date of creation: Aug 2007
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education ; returns to schooling ; natural experiment ; signaling;
Other versions of this item:
- Marc Gurgand & Eric Maurin, 2007. "A Large Scale Experiment : Wages and Educational Expansion in France," Working Papers 2007-31, Centre de Recherche en Economie et Statistique.
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- Francesco Vona, 2011. "Does the Expansion of Higher Education Reduce Educational Inequality? Evidence from 12 European Countries," Documents de Travail de l'OFCE 2011-12, Observatoire Francais des Conjonctures Economiques (OFCE).
- Etilé, Fabrice & Jones, Andrew M., 2011.
"Schooling and smoking among the baby boomers - An evaluation of the impact of educational expansion in France,"
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- Jones, A.M & Etile, F, 2010. "Schooling and smoking among the baby boomers and evaluation of the impact of educational expansion in France," Health, Econometrics and Data Group (HEDG) Working Papers 10/02, HEDG, c/o Department of Economics, University of York.
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