IDEAS home Printed from https://ideas.repec.org/p/has/bworkp/1801.html
   My bibliography  Save this paper

Increased Compulsory School Leaving Age Affects Secondary School Track Choice and Increases Dropout Rates in Vocational Training Schools

Author

Listed:
  • Anna Adamecz-Volgyi

    (Budapest Institute)

Abstract

This paper examines the effects of increasing the compulsory school leaving (CSL) age from 16 to 18 in Hungary using a regression discontinuity design (RDD) identification strategy. The new CSL age was introduced for those entering their first year of elementary school in 1998. Identification is based on compliance with the age of elementary school start rule. Compliance with the age rule creates a discontinuity in the probability of starting school under the higher CSL age regime around a cutoff date of birth. The treated cohort had known about the change since age 6. This fact allows for testing on how the increase affected forward-looking decision making about secondary school track choice which occurs at age 14. The legislation change resulted in an increased probability that children would choose the academic high school track instead of vocational training schools. At the same time, those choosing vocational training schools are more likely to drop out under the higher CSL age scheme. Potential explanations of increased dropout rates include a decrease in the quality of teaching in vocational training schools due to supply constraints, and a shift in student composition to include more students from lower socioeconomic backgrounds.

Suggested Citation

  • Anna Adamecz-Volgyi, 2018. "Increased Compulsory School Leaving Age Affects Secondary School Track Choice and Increases Dropout Rates in Vocational Training Schools," Budapest Working Papers on the Labour Market 1801, Institute of Economics, Centre for Economic and Regional Studies.
  • Handle: RePEc:has:bworkp:1801
    as

    Download full text from publisher

    File URL: http://www.mtakti.hu/wp-content/uploads/2018/02/BWP1801.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Anderson, Michael L, 2008. "Multiple Inference and Gender Differences in the Effects of Early Intervention: A Reevaluation of the Abecedarian, Perry Preschool, and Early Training Projects," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt15n8j26f, Department of Agricultural & Resource Economics, UC Berkeley.
    2. Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), 2011. "Handbook of the Economics of Education," Handbook of the Economics of Education, Elsevier, edition 1, volume 4, number 4, June.
    3. Jörn-Steffen Pischke & Till von Wachter, 2008. "Zero Returns to Compulsory Schooling in Germany: Evidence and Interpretation," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 592-598, August.
    4. Justin McCrary & Heather Royer, 2011. "The Effect of Female Education on Fertility and Infant Health: Evidence from School Entry Policies Using Exact Date of Birth," American Economic Review, American Economic Association, vol. 101(1), pages 158-195, February.
    5. Karoly Fazekas & Julia Varga (ed.), 2015. "The Hungarian Labour Market 2015," The Hungarian Labour Market Yearbooks, Institute of Economics, Centre for Economic and Regional Studies, number 2015, December.
    6. Milligan, Kevin & Moretti, Enrico & Oreopoulos, Philip, 2004. "Does education improve citizenship? Evidence from the United States and the United Kingdom," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1667-1695, August.
    7. repec:hal:pseose:halshs-00754526 is not listed on IDEAS
    8. Kasey S. Buckles & Daniel M. Hungerman, 2013. "Season of Birth and Later Outcomes: Old Questions, New Answers," The Review of Economics and Statistics, MIT Press, vol. 95(3), pages 711-724, July.
    9. SandraE. Black & PaulJ. Devereux & KjellG. Salvanes, 2008. "Staying in the Classroom and out of the maternity ward? The effect of compulsory schooling laws on teenage births," Economic Journal, Royal Economic Society, vol. 118(530), pages 1025-1054, July.
    10. Paul J. Devereux & Robert A. Hart, 2010. "Forced to be Rich? Returns to Compulsory Schooling in Britain," Economic Journal, Royal Economic Society, vol. 120(549), pages 1345-1364, December.
    11. Angrist, Joshua D, 1990. "Lifetime Earnings and the Vietnam Era Draft Lottery: Evidence from Social Security Administrative Records," American Economic Review, American Economic Association, vol. 80(3), pages 313-336, June.
    12. Daron Acemoglu & Joshua Angrist, 2001. "How Large Are Human Capital Externalities? Evidence from Compulsory Schooling Laws," NBER Chapters, in: NBER Macroeconomics Annual 2000, Volume 15, pages 9-74, National Bureau of Economic Research, Inc.
    13. Cygan-Rehm, Kamila & Maeder, Miriam, 2013. "The effect of education on fertility: Evidence from a compulsory schooling reform," Labour Economics, Elsevier, vol. 25(C), pages 35-48.
    14. Lochner, Lance & Moretti, Enrico, 2002. "The Effect of Education on Crime: Evidence from Prison Inmates, Arrests, and Self-Reports," Department of Economics, Working Paper Series qt4mf8k11n, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    15. Harmon, Colm & Walker, Ian, 1995. "Estimates of the Economic Return to Schooling for the United Kingdom," American Economic Review, American Economic Association, vol. 85(5), pages 1278-1286, December.
    16. Julien Grenet, 2013. "Is Extending Compulsory Schooling Alone Enough to Raise Earnings? Evidence from French and British Compulsory Schooling Laws," PSE-Ecole d'économie de Paris (Postprint) halshs-00754526, HAL.
    17. Büttner Bettina & Thomsen Stephan L., 2015. "Are We Spending Too Many Years in School? Causal Evidence of the Impact of Shortening Secondary School Duration," German Economic Review, De Gruyter, vol. 16(1), pages 65-86, February.
    18. Selim Gulesci & Erik Meyersson, 2013. ""For the love or the Republic" Education, Secularism, and Empowerment," Working Papers 490, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    19. Lance Lochner & Enrico Moretti, 2004. "The Effect of Education on Crime: Evidence from Prison Inmates, Arrests, and Self-Reports," American Economic Review, American Economic Association, vol. 94(1), pages 155-189, March.
    20. Guido Imbens & Karthik Kalyanaraman, 2012. "Optimal Bandwidth Choice for the Regression Discontinuity Estimator," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 79(3), pages 933-959.
    21. Costas Meghir & Mårten Palme, 2005. "Educational Reform, Ability, and Family Background," American Economic Review, American Economic Association, vol. 95(1), pages 414-424, March.
    22. Adriana Lleras-Muney, 2005. "The Relationship Between Education and Adult Mortality in the United States," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(1), pages 189-221.
    23. Anderson, Michael L., 2008. "Multiple Inference and Gender Differences in the Effects of Early Intervention: A Reevaluation of the Abecedarian, Perry Preschool, and Early Training Projects," Journal of the American Statistical Association, American Statistical Association, vol. 103(484), pages 1481-1495.
    24. Julien Grenet, 2013. "Is Extending Compulsory Schooling Alone Enough to Raise Earnings? Evidence from French and British Compulsory Schooling Laws," Scandinavian Journal of Economics, Wiley Blackwell, vol. 115(1), pages 176-210, January.
    25. Imbens, Guido W. & Lemieux, Thomas, 2008. "Regression discontinuity designs: A guide to practice," Journal of Econometrics, Elsevier, vol. 142(2), pages 615-635, February.
    26. Hessel Oosterbeek & Hans van Ophem, 2000. "Schooling choices: Preferences, discount rates, and rates of return," Empirical Economics, Springer, vol. 25(1), pages 15-34.
    27. Angrist, Joshua D, 1990. "Lifetime Earnings and the Vietnam Era Draft Lottery: Evidence from Social Security Administrative Records: Errata," American Economic Review, American Economic Association, vol. 80(5), pages 1284-1286, December.
    28. Colin Green & María Navarro Paniagua, 2012. "Does Raising The School Leaving Age Reduce Teacher Effort? Evidence From A Policy Experiment," Economic Inquiry, Western Economic Association International, vol. 50(4), pages 1018-1030, October.
    29. Cabus, Sofie J. & De Witte, Kristof, 2011. "Does school time matter?—On the impact of compulsory education age on school dropout," Economics of Education Review, Elsevier, vol. 30(6), pages 1384-1398.
    30. Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), 2011. "Handbook of the Economics of Education," Handbook of the Economics of Education, Elsevier, edition 1, volume 3, number 3, June.
    31. Bjorklund, Anders & Jantti, Markus, 1997. "Intergenerational Income Mobility in Sweden Compared to the United States," American Economic Review, American Economic Association, vol. 87(5), pages 1009-1018, December.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Anna Adamecz-Völgyi & Ágota Scharle, 2020. "Books or babies? The incapacitation effect of schooling on minority women," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(4), pages 1219-1261, October.
    2. Tamás Hajdu & Gábor Kertesi & Gábor Kézdi, 2019. "Parental Job Loss, Secondary School Completion and Home Environment," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 69(3), pages 393-423, September.

    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. Adamecz-Völgyi, Anna, 2021. "Is raising the school leaving age enough to decrease dropping out?," GLO Discussion Paper Series 985, Global Labor Organization (GLO).
    2. Hofmarcher, Thomas, 2021. "The effect of education on poverty: A European perspective," Economics of Education Review, Elsevier, vol. 83(C).
    3. Adamecz, Anna, 2023. "Longer schooling with grade retention: The effects of increasing the school leaving age on dropping out and labour market success," Economics of Education Review, Elsevier, vol. 97(C).
    4. de New, Sonja C. & Schurer, Stefanie & Sulzmaier, Dominique, 2021. "Gender differences in the lifecycle benefits of compulsory schooling policies," European Economic Review, Elsevier, vol. 140(C).
    5. Tony Beatton & Michael P. Kidd & Matteo Sandi, 2020. "School indiscipline and crime," CEP Discussion Papers dp1727, Centre for Economic Performance, LSE.
    6. Paul J. Devereux & Robert A. Hart, 2010. "Forced to be Rich? Returns to Compulsory Schooling in Britain," Economic Journal, Royal Economic Society, vol. 120(549), pages 1345-1364, December.
    7. Meyer, Andrew G., 2017. "The impact of education on political ideology: Evidence from European compulsory education reforms," Economics of Education Review, Elsevier, vol. 56(C), pages 9-23.
    8. Seeun Jung, 2015. "Does education affect risk aversion? Evidence from the British education reform," Applied Economics, Taylor & Francis Journals, vol. 47(28), pages 2924-2938, June.
    9. Michael Geruso & Heather Royer, 2018. "The Impact of Education on Family Formation: Quasi-Experimental Evidence from the UK," NBER Working Papers 24332, National Bureau of Economic Research, Inc.
    10. Dolton, Peter & Sandi, Matteo, 2017. "Returning to returns: Revisiting the British education evidence," Labour Economics, Elsevier, vol. 48(C), pages 87-104.
    11. Seeun Jung, 2014. "Does Education Affect Risk Aversion?: Evidence from the 1973 British Education Reform," PSE Working Papers halshs-00967229, HAL.
    12. DeCicca, Philip & Krashinsky, Harry, 2020. "Does education reduce teen fertility? Evidence from compulsory schooling laws," Journal of Health Economics, Elsevier, vol. 69(C).
    13. Dolton, Peter & Sandi, Matteo, 2017. "Returning to returns: revisiting the British education evidence," LSE Research Online Documents on Economics 85152, London School of Economics and Political Science, LSE Library.
    14. James, Jonathan & Vujić, Sunčica, 2019. "From high school to the high chair: Education and fertility timing," Economics of Education Review, Elsevier, vol. 69(C), pages 1-24.
    15. Titus J. Galama & Adriana Lleras-Muney & Hans van Kippersluis, 2018. "The Effect of Education on Health and Mortality: A Review of Experimental and Quasi-Experimental Evidence," NBER Working Papers 24225, National Bureau of Economic Research, Inc.
    16. Ciprian Domnisoru, 2021. "Heterogeneity across Families in the Impact of Compulsory Schooling Laws," Economica, London School of Economics and Political Science, vol. 88(350), pages 399-429, April.
    17. Kamhon Kan & Myoung‐Jae Lee, 2018. "The Effects Of Education On Fertility: Evidence From Taiwan," Economic Inquiry, Western Economic Association International, vol. 56(1), pages 343-357, January.
    18. Bahadır Dursun & Resul Cesur, 2016. "Transforming lives: the impact of compulsory schooling on hope and happiness," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(3), pages 911-956, July.
    19. Jörn-Steffen Pischke & Till von Wachter, 2008. "Zero Returns to Compulsory Schooling in Germany: Evidence and Interpretation," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 592-598, August.
    20. Mario Fiorini & Katrien Stevens, 2021. "Scrutinizing the Monotonicity Assumption in IV and fuzzy RD designs," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 83(6), pages 1475-1526, December.

    More about this item

    Keywords

    education; school choice; compulsory school leaving age; regression discontinuity design;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:has:bworkp:1801. 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: Nora Horvath (email available below). General contact details of provider: https://edirc.repec.org/data/iehashu.html .

    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.