IDEAS home Printed from https://ideas.repec.org/a/eee/poleco/v31y2013icp93-108.html
   My bibliography  Save this article

Central school exit exams and labor-market outcomes

Author

Listed:
  • Piopiunik, Marc
  • Schwerdt, Guido
  • Woessmann, Ludger

Abstract

Many countries use centralized exit exams as a governance devise of the school system. While abundant evidence suggests positive effects of central exams on achievement tests, previous research on university-bound students shows no effects on subsequent earnings. We suggest that labor-market effects may be more imminent for students leaving school directly for the labor market and, on rigid labor markets, for unemployment. Exploiting variation in exit-exam systems across German states, we find that central exams are indeed associated with higher earnings for students from the school type directly bound for the labor market, as well as with lower unemployment.

Suggested Citation

  • Piopiunik, Marc & Schwerdt, Guido & Woessmann, Ludger, 2013. "Central school exit exams and labor-market outcomes," European Journal of Political Economy, Elsevier, vol. 31(C), pages 93-108.
  • Handle: RePEc:eee:poleco:v:31:y:2013:i:c:p:93-108
    DOI: 10.1016/j.ejpoleco.2013.04.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0176268013000311
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ejpoleco.2013.04.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Eric Hanushek & Ludger Woessmann, 2012. "Do better schools lead to more growth? Cognitive skills, economic outcomes, and causation," Journal of Economic Growth, Springer, vol. 17(4), pages 267-321, December.
    2. Merzyn, Wolfram & Ursprung, Heinrich W., 2005. "Voter support for privatizing education: evidence on self-interest and ideology," European Journal of Political Economy, Elsevier, vol. 21(1), pages 33-58, March.
    3. Hendrik Jürges & Kerstin Schneider, 2010. "Central exit examinations increase performance... but take the fun out of mathematics," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(2), pages 497-517, March.
    4. Glomm, Gerhard & Ravikumar, B. & Schiopu, Ioana C., 2011. "The Political Economy of Education Funding," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 4, chapter 0, pages 615-680, Elsevier.
    5. Hanushek, Eric A. & Woessmann, Ludger, 2011. "The Economics of International Differences in Educational Achievement," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 3, chapter 2, pages 89-200, Elsevier.
    6. Raj Chetty & John N. Friedman & Nathaniel Hilger & Emmanuel Saez & Diane Whitmore Schanzenbach & Danny Yagan, 2011. "How Does Your Kindergarten Classroom Affect Your Earnings? Evidence from Project Star," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 126(4), pages 1593-1660.
    7. Hendrik Jürges & Kerstin Schneider & Felix Büchel, 2005. "The Effect Of Central Exit Examinations On Student Achievement: Quasi-Experimental Evidence From TIMSS Germany," Journal of the European Economic Association, MIT Press, vol. 3(5), pages 1134-1155, September.
    8. Hendrik Jürges & Wolfram F. Richter & Kerstin Schneider, 2005. "Teacher Quality and Incentives: Theoretical and Empirical Effects of Standards on Teacher Quality," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 61(3), pages 298-326, November.
    9. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4, National Bureau of Economic Research, Inc.
    10. West, Martin R. & Woessmann, Ludger, 2006. "Which school systems sort weaker students into smaller classes? International evidence," European Journal of Political Economy, Elsevier, vol. 22(4), pages 944-968, December.
    11. Woessmann Ludger, 2010. "Institutional Determinants of School Efficiency and Equity: German States as a Microcosm for OECD Countries," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(2), pages 234-270, April.
    12. Eric A. Hanushek & Ludger Woessmann, 2008. "The Role of Cognitive Skills in Economic Development," Journal of Economic Literature, American Economic Association, vol. 46(3), pages 607-668, September.
    13. Ludger Woessmann & Elke Luedemann & Gabriela Schuetz & Martin R. West, 2009. "School Accountability, Autonomy and Choice Around the World," Books, Edward Elgar Publishing, number 13540.
    14. Hanushek, Eric A. & Link, Susanne & Woessmann, Ludger, 2013. "Does school autonomy make sense everywhere? Panel estimates from PISA," Journal of Development Economics, Elsevier, vol. 104(C), pages 212-232.
    15. Thomas Fuchs & Ludger Wößmann, 2008. "What accounts for international differences in student prformance? A re-examination using PISA data," Studies in Empirical Economics, in: Christian Dustmann & Bernd Fitzenberger & Stephen Machin (ed.), The Economics of Education and Training, pages 209-240, Springer.
    16. Becker, William E, Jr, 1982. "The Educational Process and Student Achievement Given Uncertainty in Measurement," American Economic Review, American Economic Association, vol. 72(1), pages 229-236, March.
    17. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    18. Bishop, John H. & Moriarty, Joan Y. & Mane, Ferran, 2000. "Diplomas for learning, not seat time: the impacts of New York Regents examinations," Economics of Education Review, Elsevier, vol. 19(4), pages 333-349, October.
    19. John Bishop & Ludger Wossmann, 2004. "Institutional Effects in a Simple Model of Educational Production," Education Economics, Taylor & Francis Journals, vol. 12(1), pages 17-38.
    20. Costrell, Robert M, 1994. "A Simple Model of Educational Standards," American Economic Review, American Economic Association, vol. 84(4), pages 956-971, September.
    21. Stiglitz, Joseph E, 1975. "The Theory of "Screening," Education, and the Distribution of Income," American Economic Review, American Economic Association, vol. 65(3), pages 283-300, June.
    22. Ludger Wößmann, 2003. "Schooling Resources, Educational Institutions and Student Performance: the International Evidence," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(2), pages 117-170, May.
    23. Jürges, Hendrik & Schneider, Kerstin & Senkbeil, Martin & Carstensen, Claus H., 2012. "Assessment drives learning: The effect of central exit exams on curricular knowledge and mathematical literacy," Economics of Education Review, Elsevier, vol. 31(1), pages 56-65.
    24. Becker, William E. & Rosen, Sherwin, 1992. "The learning effect of assessment and evaluation in high school," Economics of Education Review, Elsevier, vol. 11(2), pages 107-118, June.
    25. Mark Gradstein & Moshe Justman & Volker Meier, 2004. "The Political Economy of Education: Implications for Growth and Inequality," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262072564, December.
    26. Graham, Amy E. & Husted, Thomas A., 1993. "Understanding state variations in SAT scores," Economics of Education Review, Elsevier, vol. 12(3), pages 197-202, September.
    27. Daniel M. Koretz, 2002. "Limitations in the Use of Achievement Tests as Measures of Educators' Productivity," Journal of Human Resources, University of Wisconsin Press, vol. 37(4), pages 752-777.
    28. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    29. Richard J. Murnane & John B. Willett & Yves Duhaldeborde & John H. Tyler, 2000. "How important are the cognitive skills of teenagers in predicting subsequent earnings?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 19(4), pages 547-568.
    30. Brian A. Jacob & Steven D. Levitt, 2003. "Rotten Apples: An Investigation of the Prevalence and Predictors of Teacher Cheating," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(3), pages 843-877.
    31. Betts, Julian R, 1998. "The Impact of Educational Standards on the Level and Distribution of Earnings," American Economic Review, American Economic Association, vol. 88(1), pages 266-275, March.
    32. Stephen Nickell & Luca Nunziata & Wolfgang Ochel, 2005. "Unemployment in the OECD Since the 1960s. What Do We Know?," Economic Journal, Royal Economic Society, vol. 115(500), pages 1-27, January.
    33. Bishop, John, 2006. "Drinking from the Fountain of Knowledge: Student Incentive to Study and Learn - Externalities, Information Problems and Peer Pressure," Handbook of the Economics of Education, in: Erik Hanushek & F. Welch (ed.), Handbook of the Economics of Education, edition 1, volume 2, chapter 15, pages 909-944, Elsevier.
    34. Casey B. Mulligan, 1999. "Galton versus the Human Capital Approach to Inheritance," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages 184-224, December.
    35. Christian Dustmann, 2004. "Parental background, secondary school track choice, and wages," Oxford Economic Papers, Oxford University Press, vol. 56(2), pages 209-230, April.
    36. Jürgen Schupp & Gert G. Wagner, 2002. "Maintenance of and Innovation in Long-Term Panel Studies: The Case of the German Socio-Economic Panel (GSOEP)," Discussion Papers of DIW Berlin 276, DIW Berlin, German Institute for Economic Research.
    37. Figlio, David & Loeb, Susanna, 2011. "School Accountability," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 3, chapter 8, pages 383-421, Elsevier.
    38. Bernd Fitzenberger & Gaby Wunderlich, 2002. "Gender Wage Differences in West Germany: A Cohort Analysis," German Economic Review, Verein für Socialpolitik, vol. 3(4), pages 379-414, November.
    39. Bishop, John H. & Mane, Ferran, 2001. "The impacts of minimum competency exam graduation requirements on high school graduation, college attendance and early labor market success," Labour Economics, Elsevier, vol. 8(2), pages 203-222, May.
    40. Eric A. Hanushek & Steven G. Rivkin, 2012. "The Distribution of Teacher Quality and Implications for Policy," Annual Review of Economics, Annual Reviews, vol. 4(1), pages 131-157, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. La importancia de las evaluaciones educativas como herramienta de transparencia y mejora (I)
      by Ismael Sanz Labrador in Politikon on 2016-09-13 13:00:05

    Citations

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


    Cited by:

    1. Ludger Woessmann, 2018. "Central exit exams improve student outcomes," IZA World of Labor, Institute of Labor Economics (IZA), pages 419-419, January.
    2. Schwerdt, Guido & Woessmann, Ludger, 2017. "The information value of central school exams," Economics of Education Review, Elsevier, vol. 56(C), pages 65-79.
    3. Leschnig, Lisa & Schwerdt, Guido & Zigova, Katarina, 2022. "Central exams and adult skills: Evidence from PIAAC," Economics of Education Review, Elsevier, vol. 90(C).

    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. Elke Lüdemann, 2011. "Schooling and the Formation of Cognitive and Non-cognitive Outcomes," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 39, May.
    2. Leschnig, Lisa & Schwerdt, Guido & Zigova, Katarina, 2022. "Central exams and adult skills: Evidence from PIAAC," Economics of Education Review, Elsevier, vol. 90(C).
    3. Schwerdt, Guido & Woessmann, Ludger, 2017. "The information value of central school exams," Economics of Education Review, Elsevier, vol. 56(C), pages 65-79.
    4. Ludger Woessmann, 2016. "The Importance of School Systems: Evidence from International Differences in Student Achievement," Journal of Economic Perspectives, American Economic Association, vol. 30(3), pages 3-32, Summer.
    5. Lisa Grazzini, 2016. "The Importance of the Quality of Education: Some Determinants and its Effects on Earning Returns and Economic Growth," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2016(2), pages 43-82.
    6. Ludger Wößmann, 2006. "Bildungspolitische Lehren aus den internationalen Schülertests: Wettbewerb, Autonomie und externe Leistungsüberprüfung," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 7(3), pages 417-444, August.
    7. Eric Hanushek & Ludger Woessmann, 2012. "Do better schools lead to more growth? Cognitive skills, economic outcomes, and causation," Journal of Economic Growth, Springer, vol. 17(4), pages 267-321, December.
    8. Eric A. Hanushek & Jens Ruhose & Ludger Woessmann, 2017. "Knowledge Capital and Aggregate Income Differences: Development Accounting for US States," American Economic Journal: Macroeconomics, American Economic Association, vol. 9(4), pages 184-224, October.
    9. Hanushek, Eric A. & Schwerdt, Guido & Wiederhold, Simon & Woessmann, Ludger, 2015. "Returns to skills around the world: Evidence from PIAAC," European Economic Review, Elsevier, vol. 73(C), pages 103-130.
    10. Hanushek, Eric A. & Link, Susanne & Woessmann, Ludger, 2013. "Does school autonomy make sense everywhere? Panel estimates from PISA," Journal of Development Economics, Elsevier, vol. 104(C), pages 212-232.
    11. Ludger Wößmann, 2020. "Folgekosten ausbleibenden Lernens: Was wir über die Corona-bedingten Schulschließungen aus der Forschung lernen können," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 73(06), pages 38-44, June.
    12. Hanushek, Eric A., 2021. "Addressing cross-national generalizability in educational impact evaluation," International Journal of Educational Development, Elsevier, vol. 80(C).
    13. Campbell, Susanna G. & Üngör, Murat, 2020. "Revisiting human capital and aggregate income differences," Economic Modelling, Elsevier, vol. 91(C), pages 43-64.
    14. Ludger Woessmann, 2018. "Central exit exams improve student outcomes," IZA World of Labor, Institute of Labor Economics (IZA), pages 419-419, January.
    15. Hanushek, Eric A., 2015. "Why Standard Measures of Human Capital are Misleading," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 37(2), pages 22-37.
    16. Ludger Wößmann, 2005. "Leistungsfördernde Anreize für das Schulsystem," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 58(19), pages 18-27, October.
    17. Altinok, Nadir & Aydemir, Abdurrahman, 2017. "Does one size fit all? The impact of cognitive skills on economic growth," Journal of Macroeconomics, Elsevier, vol. 53(C), pages 176-190.
    18. Woessmann Ludger, 2010. "Institutional Determinants of School Efficiency and Equity: German States as a Microcosm for OECD Countries," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(2), pages 234-270, April.
    19. Ludger Wößmann, 2008. "Efficiency and equity of European education and training policies," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 15(2), pages 199-230, April.
    20. Hanushek, Eric A., 2013. "Economic growth in developing countries: The role of human capital," Economics of Education Review, Elsevier, vol. 37(C), pages 204-212.

    More about this item

    Keywords

    Central exit exams; Earnings; Unemployment; Germany;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

    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:eee:poleco:v:31:y:2013:i:c:p:93-108. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505544 .

    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.