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The Labor Market and Fertility Impacts of Decreasing the Compulsory Schooling Age

Author

Listed:
  • Anna Adamecz-Völgyi

    (Institute of Economics, Centre for Economic and Regional Studies (KRTK KRTI), Toth Kalman u. 4, 1097 Budapest and UCL Social Research Institute, University College London, 27 Woburn Square, London WC1H 0AA)

  • Dániel Prinz

    (The Institute for Fiscal Studies 7 Ridgmount Street London WC1E 7AE.)

  • Ágnes Szabó-Morvai

    (Institute of Economics, Centre for Economic and Regional Studies (KRTK KRTI), Toth Kalman u. 4, 1097 Budapest and University of Debrecen, Faculty of Economics and Business, Boszormenyi ut 138. 4032 Debrecen)

  • Sunčica Vujić

    (University of Antwerp Prinsstraat 13 2000 Antwerpen and IZA Institute of Labour Economics Schaumburg-Lippe-Straße 5-9, 53113 Bonn)

Abstract

While an extensive literature investigates the effects of longer schooling, we know very little about what happens when compulsory schooling is shortened. This paper looks at the effects of a reform in Hungary that decreased the school leaving age from 18 to 16. We show that the reform increased the probability of being neither in education nor in employment and being inactive at ages 16-18 substantially while its effects on employment are not significantly different from zero in most specifications. These effects are similar among boys and girls but strongly heterogeneous by social background and ability. The reform had a moderate effect on teenage motherhood on average, but it increased the probability of giving birth substantially among the most disadvantaged girls. We conclude that through its heterogenous effects, the reform is expected to widen social inequalities.

Suggested Citation

  • Anna Adamecz-Völgyi & Dániel Prinz & Ágnes Szabó-Morvai & Sunčica Vujić, 2021. "The Labor Market and Fertility Impacts of Decreasing the Compulsory Schooling Age," CERS-IE WORKING PAPERS 2140, Institute of Economics, Centre for Economic and Regional Studies.
    • Handle: RePEc:has:discpr:2140
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    More about this item

    Keywords

    education; teenage fertility; school leaving age; public works; NEET; inactivity;
    All these keywords.

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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