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Do a Few Months of Compulsory Schooling Matter? The Education and Labour Market Impact of School Leaving Rules

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Author Info
Del Bono, Emilia (Queens College, University of Oxford, University of California, Berkeley and IZA Bonn)
Galindo-Rueda, Fernando () (CEP, London School of Economics and IZA Bonn)

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Abstract

This paper contributes to the understanding of how compulsory schooling regulations affect educational attainment and subsequent labour market outcomes. It uses valuable information from a natural experiment driven by rules that allow for variation in legal dropout dates. Since the school leaving rule bites in the middle of a school year cohort, our identification approach is immune to other relative age/peer effects. Information on the precise month of birth enables us to show that students compelled to stay on in education as a result of this compulsory school leaving rule attain higher qualification levels and see their participation and employment probability as adults enhanced. We show that the estimated genuine impact of attaining an academic qualification on participation and employment is always statistically significant, in particular for women, although IV coefficients are usually below OLS estimates.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1233.

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Length: 54 pages
Date of creation: Aug 2004
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Handle: RePEc:iza:izadps:dp1233

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Related research
Keywords: education; school leaving rules; instrumental variables; participation; employment;

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Find related papers by JEL classification:
I2 - Health, Education, and Welfare - - Education
C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Estimation
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Jörn-Steffen Pischke, 2004. "The Impact of the School Year on Student Performance and Earnings: Evidence from the German short school years," CEE Discussion Papers 0034, Centre for the Economics of Education, LSE. [Downloadable!]
  2. Angrist, Joshua D & Krueger, Alan B, 1991. "Does Compulsory School Attendance Affect Schooling and Earnings?," The Quarterly Journal of Economics, MIT Press, vol. 106(4), pages 979-1014, November. [Downloadable!] (restricted)
    Other versions:
  3. Arnaud Chevalier, 2004. "Parental Education and Childs Education: A Natural Experiment," CEE Discussion Papers 0040, Centre for the Economics of Education, LSE. [Downloadable!]
    Other versions:
  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. [Downloadable!]
    Other versions:
  5. 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. [Downloadable!] (restricted)
  6. Plug, Erik J. S., 2001. "Season of birth, schooling and earnings," Journal of Economic Psychology, Elsevier, vol. 22(5), pages 641-660, October. [Downloadable!] (restricted)
  7. Andrew Chesher, 2003. "Nonparametric identification under discrete variation," CeMMAP working papers CWP19/03, Centre for Microdata Methods and Practice, Institute for Fiscal Studies. [Downloadable!]
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  8. Dearden, Lorraine, 1999. "The effects of families and ability on men's education and earnings in Britain1," Labour Economics, Elsevier, vol. 6(4), pages 551-567, November. [Downloadable!] (restricted)
  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. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Patrick Puhani & Andrea Maria Weber, 2005. "Does the Early Bird Catch the Worm? Instrumental Variable Estimates of Educational Effects of Age of School Entry in Germany," Darmstadt Discussion Papers in Economics 151, Institut für Volkswirtschaftslehre (Department of Economics), Technische Universität Darmstadt (Darmstadt University of Technology). [Downloadable!]
    Other versions:
  2. Fertig, Michael & Kluve, Jochen, 2005. "The Effect of Age at School Entry on Educational Attainment in Germany," IZA Discussion Papers 1507, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Erich Battistin & Barbara Sianesi, 2006. "Misreported schooling and returns to education: evidence from the UK," CeMMAP working papers CWP07/06, Centre for Microdata Methods and Practice, Institute for Fiscal Studies. [Downloadable!]
  4. Michael Fertig & Jochen Kluve, 2005. "The Effect of Age at School Entry on Educational Attainment in Germany," RWI Discussion Papers 0027, Rheinisch-Westfälisches Institut für Wirtschaftsforschung. [Downloadable!]
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