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The effects of schooling on cognitive skills: evidence from education expansions

Author

Listed:
  • Lorenzo Cappellari

    (Università Cattolica del Sacro Cuore
    Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore)

  • Daniele Checchi
  • Marco Ovidi

    (Università Cattolica del Sacro Cuore
    Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore)

Abstract

We quantify the causal effect of schooling on cognitive skills across 21 countries and the full distribution of working-age individuals. We exploit exogenous variation in educational attainment induced by a broad set of institutional reforms affecting different cohorts of individuals in different countries. We find a positive effect of an additional year of schooling on internationally-comparable numeracy and literacy scores. We show that the effect is substantially homogeneous by gender and socio-economic background and that it is larger for individuals completing a formal qualification rather than dropping out. Results suggest that early and late school years are the most decisive for cognitive skill development. Exploiting unique survey data on the use of skills, we find suggestive evidence that our result is mediated by access to high-skill jobs.

Suggested Citation

  • Lorenzo Cappellari & Daniele Checchi & Marco Ovidi, 2022. "The effects of schooling on cognitive skills: evidence from education expansions," DISCE - Working Papers del Dipartimento di Economia e Finanza def122, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    • Handle: RePEc:ctc:serie1:def122
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    File URL: http://dipartimenti.unicatt.it/economia-finanza-def122.pdf
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    Cited by:

    1. Entorf, Antonia K. & Dohmen, Thomas J., 2025. "The effect of compulsory education on non-cognitive skills: Evidence from low- and middle-income countries," Economics of Education Review, Elsevier, vol. 107(C).
    2. Theodor Bingley, 2025. "Democratization, Institutions, and the Private Financial Returns to Socialist Schooling in Central and Eastern Europe 1938–2017," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 67(3), pages 492-524, September.
    3. Andrea Boitani & Catalin Dragomirescu-Gaina & Andrea Monticini, 2025. "Managing the chaos: policy challenges in a hyperinflationary environment," DISCE - Working Papers del Dipartimento di Economia e Finanza def142, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    4. Kunt Šimunović, Pınar, 2024. "Education increases patience: Evidence from a change in a compulsory schooling law," Economics & Human Biology, Elsevier, vol. 53(C).
    5. Valentina Colombo & Alessia Paccagnini, 2024. "Uncertainty and the Federal Reserve’s Balance Sheet Monetary Policy," DISCE - Working Papers del Dipartimento di Economia e Finanza def131, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    6. Russell Davidson & Andrea Monticini, 2023. "Bootstrap Performance with Heteroskedasticity," DISCE - Working Papers del Dipartimento di Economia e Finanza def130, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    7. Elena Cottini & Lorena Popescu & Luca Salmasi & Gilberto Turati, 2025. "Poisoned Air, Shortened Lives: PM2.5 Exposure and Premature Mortality in Southern European Cities," DISCE - Working Papers del Dipartimento di Economia e Finanza def143, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    8. Federico Di Pace & Giacomo Mangiante & Riccardo Masolo, 2024. "Monetary policy rules: the market’s view," DISCE - Working Papers del Dipartimento di Economia e Finanza def137, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    9. Avvisati, Francesco & Givord, Pauline, 2023. "The learning gain over one school year among 15-year-olds: An international comparison based on PISA," Labour Economics, Elsevier, vol. 84(C).

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    Keywords

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    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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