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The effect of education on earnings dynamics: evidence from Italy

Author

Listed:
  • Teresa Barbieri

    (University of Bari)

  • Vito Peragine

    (University of Bari)

  • Michele Raitano

    (Sapienza University of Rome)

Abstract

We provide a detailed picture of the causal relationship between schooling and earnings dynamics by relying on the Italian case and estimating the effect of education on earnings level, mobility and volatility over the career. To our aim, we exploit the 1962 reform that extended compulsory schooling from 5 to 8 years and adopt a regression discontinuity design. We do not find a statistically significant effect of education's increase on men's earnings, whereas we find that extra schooling increases female earnings. We also find that, for female workers, the increase in compulsory education established by the reform contributed to reduce earnings mobility. Finally, we find a high degree of heterogeneity across regional macro-areas in terms of compliance with the policy and, consequently, in the effect of education on earnings.

Suggested Citation

  • Teresa Barbieri & Vito Peragine & Michele Raitano, 2025. "The effect of education on earnings dynamics: evidence from Italy," SERIES 03-2025, Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro", revised Oct 2025.
    • Handle: RePEc:bai:series:series_wp_03-2025
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    File URL: http://www.seriesworkingpapers.it/RePEc/bai/series/SERIES_WP_03-2025.pdf
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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