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Is there a Causal Effect of High School Math on Labor Market Outcomes?

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  • Juanna Schrøter Joensen
  • Helena Skyt Nielsen

    (School of Economics and Management, University of Aarhus, Denmark)

Abstract

Outsourcing of jobs to low-wage countries has increased the focus on the accumulation of skills - such as Math skills - in high-wage countries. In this paper, we exploit a high school pilot scheme to identify the causal effect of advanced high school Math on labor market outcomes. The pilot scheme reduced the costs of choosing advanced Math because it allowed for at more flexible combination of Math with other courses. We find clear evidence of a causal relationship between Math and earnings for the students who are induced to choose Math after being exposed to the pilot scheme. The effect partly stems from the fact that these students end up with higher education.

Suggested Citation

  • Juanna Schrøter Joensen & Helena Skyt Nielsen, 2006. "Is there a Causal Effect of High School Math on Labor Market Outcomes?," Economics Working Papers 2006-11, Department of Economics and Business Economics, Aarhus University.
    • Handle: RePEc:aah:aarhec:2006-11
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    More about this item

    Keywords

    Math; High School Curriculum; Instrumental Variable; Local Average Treatment Effect.;
    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

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    This paper has been announced in the following NEP Reports:

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