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Schooling and Labor Market Impact of the 1968 Nine-Year Education Program in Taiwan

Author

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  • Diana E. Clark

    (University of California at Berkeley)

  • Chang-Tai Hsieh

    (Princeton University)

Abstract

The extension of basic schooling from six to nine years in 1968 was the largest expansion of education in Taiwan's modern history. More than 140 new junior high schools were opened in 1968 under this program, increasing the number of junior high schools by 70 percent from 1967 to 1968. We evaluate the effect of this program on education and wages by analyzing cohort differences in educational attainment induced by the timing of the program and by combining these cohort differences with differences across counties in the number of schools built. These estimates suggest that children who were between the ages of 6 and 11 in 1968 received 0.6 additional years of education for every school constructed per 1000 children between the ages of 12 to 14. We use the exogenous variation in schooling due to this program to construct instrumental variable (IV) estimates of the returns to education. We find that IV estimates based on cohort differences in education are lower than the corresponding OLS estimates, but IV estimates based on regional differences in inter-cohort patterns are not significantly different from the OLS estimates.

Suggested Citation

  • Diana E. Clark & Chang-Tai Hsieh, 2000. "Schooling and Labor Market Impact of the 1968 Nine-Year Education Program in Taiwan," Working Papers 215, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
    • Handle: RePEc:pri:rpdevs:clark_hsieh_school_labormarket.pdf
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    References listed on IDEAS

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    Cited by:

    1. James P. Vere, 2001. "Education, Technology and the Wage Structure in Taiwan, 1979-1998," Working Papers 208, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
    2. Wehn-Jyuan Tsai & Jin-Tan Liu & Shin-Yi Chou & Michael Grossman, 2011. "Intergeneration Transfer of Human Capital: Results from a Natural Experiment in Taiwan," NBER Working Papers 16876, National Bureau of Economic Research, Inc.
    3. Hon‐Kwong Lui & Wing Suen, 2005. "The Shrinking Earnings Premium for University Graduates in Hong Kong: The Effect of Quantity or Quality?," Contemporary Economic Policy, Western Economic Association International, vol. 23(2), pages 242-254, April.
    4. Vere, James P, 2005. "Education, Development, and Wage Inequality: The Case of Taiwan," Economic Development and Cultural Change, University of Chicago Press, vol. 53(3), pages 711-735, April.

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    More about this item

    Keywords

    Taiwan;

    JEL classification:

    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education

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