IDEAS home Printed from https://ideas.repec.org/p/ifs/ifsewp/20-28.html

A second chance? Labor market returns to adult education using school reforms

Author

Listed:
  • Patrick Bennett

    (Institute for Fiscal Studies)

  • Richard Blundell

    (Institute for Fiscal Studies and University College London)

  • Kjell G. Salvanes

    (Institute for Fiscal Studies and Norwegian School of Economics)

Abstract

Roughly one third of a cohort drop out of high school across OECD countries, and developing e?ective tools to address prime-aged high school dropouts is a key policy question. We leverage high quality Norwegian register data, and for identi?cation we exploit reforms enabling access to high school for adults above the age of 25. The paper ?nds that considerable increases in high school completion and beyond among women lead to higher earnings, increased employment, and decreased fertility. As male education remains unchanged by the reforms, later life education reduces the pre-existing gender earnings gap by a considerable fraction.

Suggested Citation

  • Patrick Bennett & Richard Blundell & Kjell G. Salvanes, 2020. "A second chance? Labor market returns to adult education using school reforms," IFS Working Papers W20/28, Institute for Fiscal Studies.
  • Handle: RePEc:ifs:ifsewp:20/28
    as

    Download full text from publisher

    File URL: https://ifs.org.uk/uploads/WP202028-A-second-chance-Labor-market-returns-to-adult-education-using-school-reforms.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Christopher Jepsen & Peter Mueser & Kenneth Troske, 2016. "Labor Market Returns to the GED Using Regression Discontinuity Analysis," Journal of Political Economy, University of Chicago Press, vol. 124(3), pages 621-649.
    2. Nekoei, Arash & Seim, David, 2018. "How do Inheritances Shape Wealth Inequality? Theory and Evidence from Sweden," CEPR Discussion Papers 13199, C.E.P.R. Discussion Papers.
    3. Itzik Fadlon & Torben Heien Nielsen, 2019. "Family Health Behaviors," American Economic Review, American Economic Association, vol. 109(9), pages 3162-3191, September.
    4. Pohlan, Laura, 2019. "Unemployment and social exclusion," Journal of Economic Behavior & Organization, Elsevier, vol. 164(C), pages 273-299.
    5. Elizabeth U. Cascio & Ayushi Narayan, 2022. "Who Needs a Fracking Education? The Educational Response to Low-Skill-Biased Technological Change," ILR Review, Cornell University, ILR School, vol. 75(1), pages 56-89, January.
    6. Marianne Bertrand & Magne Mogstad & Jack Mountjoy, 2021. "Improving Educational Pathways to Social Mobility: Evidence from Norway’s Reform 94," Journal of Labor Economics, University of Chicago Press, vol. 39(4), pages 965-1010.
    7. John H. Tyler & Richard J. Murnane & John B. Willett, 2000. "Estimating the Labor Market Signaling Value of the GED," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(2), pages 431-468.
    8. Richard Blundell & Monica Costa-Dias & David Goll & Costas Meghir, 2021. "Wages, Experience, and Training of Women over the Life Cycle," Journal of Labor Economics, University of Chicago Press, vol. 39(S1), pages 275-315.
    9. Thomas Cornelissen & Christian Dustmann & Anna Raute & Uta Schönberg, 2018. "Who Benefits from Universal Child Care? Estimating Marginal Returns to Early Child Care Attendance," Journal of Political Economy, University of Chicago Press, vol. 126(6), pages 2356-2409.
    10. Alberto Abadie, 2005. "Semiparametric Difference-in-Differences Estimators," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(1), pages 1-19.
    11. Christian N. Brinch & Magne Mogstad & Matthew Wiswall, 2017. "Beyond LATE with a Discrete Instrument," Journal of Political Economy, University of Chicago Press, vol. 125(4), pages 985-1039.
    12. James J. Heckman & Paul A. LaFontaine, 2006. "Bias-Corrected Estimates of GED Returns," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 661-700, July.
    13. Richard Blundell & Monica Costa Dias, 2009. "Alternative Approaches to Evaluation in Empirical Microeconomics," Journal of Human Resources, University of Wisconsin Press, vol. 44(3).
    14. Claudia Goldin, 2006. "The Quiet Revolution That Transformed Women's Employment, Education, and Family," American Economic Review, American Economic Association, vol. 96(2), pages 1-21, May.
    15. Teodora Boneva & Christopher Rauh, 2017. "Socio-Economic Gaps in University Enrollment: The Role of Perceived Pecuniary and Non-Pecuniary Returns," Working Papers 2017-080, Human Capital and Economic Opportunity Working Group.
    16. Matias Busso & John DiNardo & Justin McCrary, 2014. "New Evidence on the Finite Sample Properties of Propensity Score Reweighting and Matching Estimators," The Review of Economics and Statistics, MIT Press, vol. 96(5), pages 885-897, December.
    17. Nikolay Angelov & Per Johansson & Erica Lindahl, 2016. "Parenthood and the Gender Gap in Pay," Journal of Labor Economics, University of Chicago Press, vol. 34(3), pages 545-579.
    18. Blundell, Richard & Joyce, Robert & Norris Keiller, Agnes & Ziliak, James P., 2018. "Income inequality and the labour market in Britain and the US," Journal of Public Economics, Elsevier, vol. 162(C), pages 48-62.
    19. Aline Bütikofer & Antonio Dalla-Zuanna & Kjell G. Salvanes, 2025. "Breaking the Links: Natural Resource Booms and Intergenerational Mobility," The Review of Economics and Statistics, MIT Press, vol. 107(2), pages 306-323, March.
    20. Schwerdt, Guido & Messer, Dolores & Woessmann, Ludger & Wolter, Stefan C., 2012. "The impact of an adult education voucher program: Evidence from a randomized field experiment," Journal of Public Economics, Elsevier, vol. 96(7-8), pages 569-583.
    21. Albæk, Karsten & Asplund, Rita & Barth, Erling & Lindahl, Lena & Strom, Marte & Vanhala, Pekka, 2019. "Better Late Than Never? How Late Completion Affects the Early Careers of Dropouts," IZA Discussion Papers 12560, Institute of Labor Economics (IZA).
    22. Alberto Abadie & Guido W. Imbens, 2008. "On the Failure of the Bootstrap for Matching Estimators," Econometrica, Econometric Society, vol. 76(6), pages 1537-1557, November.
    23. Francine D. Blau & Lawrence M. Kahn, 2017. "The Gender Wage Gap: Extent, Trends, and Explanations," Journal of Economic Literature, American Economic Association, vol. 55(3), pages 789-865, September.
    24. Stenberg, Anders & Westerlund, Olle, 2008. "Does comprehensive education work for the long-term unemployed," Labour Economics, Elsevier, vol. 15(1), pages 54-67, February.
    25. James Albrecht & Gerard van den Berg & Susan Vroman, 2009. "The Aggregate Labor Market Effects of the Swedish Knowledge Lift Program," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 12(1), pages 129-146, January.
    26. O. Ashenfelter & D. Card (ed.), 1999. "Handbook of Labor Economics," Handbook of Labor Economics, Elsevier, edition 1, volume 3, number 3.
    27. Charles F. Manski, 1993. "Adolescent Econometricians: How Do Youth Infer the Returns to Schooling?," NBER Chapters, in: Studies of Supply and Demand in Higher Education, pages 43-60, National Bureau of Economic Research, Inc.
    28. Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2005. "Why the Apple Doesn't Fall Far: Understanding Intergenerational Transmission of Human Capital," American Economic Review, American Economic Association, vol. 95(1), pages 437-449, March.
    29. Magne Mogstad & Andres Santos & Alexander Torgovitsky, 2018. "Using Instrumental Variables for Inference About Policy Relevant Treatment Parameters," Econometrica, Econometric Society, vol. 86(5), pages 1589-1619, September.
    30. Edward Vytlacil & James J. Heckman, 2001. "Policy-Relevant Treatment Effects," American Economic Review, American Economic Association, vol. 91(2), pages 107-111, May.
    31. Black, Sandra E. & Devereux, Paul J., 2011. "Recent Developments in Intergenerational Mobility," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 16, pages 1487-1541, Elsevier.
    32. Goldin, Claudia, 2006. "The Quiet Revolution That Transformed Women’s Employment, Education, and Family," Scholarly Articles 2943933, Harvard University Department of Economics.
    33. Blanden, Jo & Buscha, Franz & Sturgis, Patrick & Urwin, Peter, 2012. "Measuring the earnings returns to lifelong learning in the UK," Economics of Education Review, Elsevier, vol. 31(4), pages 501-514.
    34. Jamein Cunningham & Andrew Goodman-Bacon, 2025. "Changes in Family Structure and Welfare Participation since the 1960s: The Role of Legal Services," American Economic Journal: Applied Economics, American Economic Association, vol. 17(1), pages 369-401, January.
    35. Henrik Kleven & Camille Landais & Jakob Egholt Søgaard, 2019. "Children and Gender Inequality: Evidence from Denmark," American Economic Journal: Applied Economics, American Economic Association, vol. 11(4), pages 181-209, October.
    36. Matthew Wiswall & Basit Zafar, 2015. "Determinants of College Major Choice: Identification using an Information Experiment," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 82(2), pages 791-824.
    37. Bjorklund, Anders & Moffitt, Robert, 1987. "The Estimation of Wage Gains and Welfare Gains in Self-selection," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 42-49, February.
    38. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863, Elsevier.
    39. Acemoglu, Daron & Autor, David, 2011. "Skills, Tasks and Technologies: Implications for Employment and Earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 12, pages 1043-1171, Elsevier.
    40. Giovanni Mastrobuoni & Paolo Pinotti, 2015. "Legal Status and the Criminal Activity of Immigrants," American Economic Journal: Applied Economics, American Economic Association, vol. 7(2), pages 175-206, April.
    41. Gary S. Becker, 1975. "Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education, Second Edition," NBER Books, National Bureau of Economic Research, Inc, number beck75-1, January-J.
    42. Robert Jensen, 2010. "The (Perceived) Returns to Education and the Demand for Schooling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(2), pages 515-548.
    43. Manudeep Bhuller & Magne Mogstad & Kjell G. Salvanes, 2017. "Life-Cycle Earnings, Education Premiums, and Internal Rates of Return," Journal of Labor Economics, University of Chicago Press, vol. 35(4), pages 993-1030.
    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. Pedro Carneiro & Kjell Salvanes & Barton Willage & Alexander Willén, 2023. "Childhood Shocks Across Ages and Human Capital Formation," Working Papers 2023-018, Human Capital and Economic Opportunity Working Group.
    2. Patrick Bennett, 2021. "The Work-To-School Transition: Job Displacement and Skill Upgrading among Young High School Dropouts," CESifo Working Paper Series 9417, CESifo.
    3. Patrick Bennett & Kai Liu & Kjell Salvanes, 2023. "The Decline of Routine Tasks, Education Investments, and Intergenerational Mobility," Upjohn Working Papers 23-382, W.E. Upjohn Institute for Employment Research.
    4. Tilley, J. Lucas, 2023. "School resources, peer inputs, and student outcomes in adult education," Economics of Education Review, Elsevier, vol. 96(C).
    5. Karlsson, Linn, 2021. "Never too late? Returning to university after completing secondary education as adults," Umeå Economic Studies 1002, Umeå University, Department of Economics.
    6. Kauhanen, Antti & Virtanen, Hanna, 2021. "Heterogeneity in Labor Market Returns to Adult Education," ETLA Working Papers 91, The Research Institute of the Finnish Economy.
    7. Carneiro, Pedro & Salvanes, Kjell G. & Willage, Barton & Willén, Alexander, 2022. "The Timing of Parental Job Displacement, Child Development and Family Adjustment," Discussion Paper Series in Economics 12/2022, Norwegian School of Economics, Department of Economics.
    8. Richard Blundell, 2022. "Inequality, Redistribution and Wage Progression," Economica, London School of Economics and Political Science, vol. 89(S1), pages 160-177, June.
    9. Kirill Borusyak & Xavier Jaravel & Jann Spiess, 2024. "Revisiting Event-Study Designs: Robust and Efficient Estimation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 91(6), pages 3253-3285.

    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. Bennett, Patrick & Blundell, Richard & Salvanes, Kjell Gunnar, 2020. "A Second Chance? Labor Market Returns to Adult Education Using School Reforms," Discussion Paper Series in Economics 14/2020, Norwegian School of Economics, Department of Economics.
    2. Patrick Bennett, 2021. "The Work-To-School Transition: Job Displacement and Skill Upgrading among Young High School Dropouts," CESifo Working Paper Series 9417, CESifo.
    3. Alexia Delfino, 2024. "Breaking Gender Barriers: Experimental Evidence on Men in Pink-Collar Jobs," American Economic Review, American Economic Association, vol. 114(6), pages 1816-1853, June.
    4. Musayir, Arlan & Arabsheibani, Reza, 2025. "Motherhood and Informality: Empirical Evidence from Russia," IZA Discussion Papers 17916, Institute of Labor Economics (IZA).
    5. M. A. Bautista & F. Gonz�lez & L. R. Mart�nez & P. Mu�oz & M. Prem, 2020. "Chile’s Missing Students: Dictatorship, Higher Education and Social Mobility," Documentos de Trabajo 18163, Universidad del Rosario.
    6. Bartalotti, Otávio & Kédagni, Désiré & Possebom, Vitor, 2023. "Identifying marginal treatment effects in the presence of sample selection," Journal of Econometrics, Elsevier, vol. 234(2), pages 565-584.
    7. Mogstad, Magne & Torgovitsky, Alexander, 2024. "Instrumental variables with unobserved heterogeneity in treatment effects," Handbook of Labor Economics,, Elsevier.
    8. Matthias Westphal & Daniel A Kamhöfer & Hendrik Schmitz, 2022. "Marginal College Wage Premiums Under Selection Into Employment," The Economic Journal, Royal Economic Society, vol. 132(646), pages 2231-2272.
    9. Petrongolo, Barbara & Ronchi, Maddalena, 2020. "Gender gaps and the structure of local labor markets," Labour Economics, Elsevier, vol. 64(C).
    10. Bhalotra, Sonia & Clarke, Damian & Walther, Selma, 2022. "Women's Careers and Family Formation," GLO Discussion Paper Series 1120, Global Labor Organization (GLO).
    11. Manudeep Bhuller & Philipp Eisenhauer & Moritz Mendel, 2022. "Sequential Choices, Option Values, and the Returns to Education," Papers 2205.05444, arXiv.org, revised Jul 2024.
    12. Josep Amer-Mestre and Agnès Charpin, 2022. "Gender Differences in Early Occupational Choices: Evidence from Medical Specialty Selection," Economics Working Papers EUI ECO 2022/01, European University Institute.
    13. Borghorst, Malte & Mulalic, Ismir & van Ommeren, Jos, 2024. "Commuting, gender and children," Journal of Urban Economics, Elsevier, vol. 144(C).
    14. Tafti, Elena Ashtari, 2023. "Technology, Skills, and Performance: The Case of Robots in Surgery," CINCH Working Paper Series (since 2020) 78746, Duisburg-Essen University Library, DuEPublico.
    15. Estefanía Galván & Cecilia García‐Peñalosa, 2025. "Interactions among gender norms: Evidence from US couples," Scottish Journal of Political Economy, Scottish Economic Society, vol. 72(1), February.
    16. Liang, Wenquan & Xue, Sen, 2021. "Pandemics and Intergenerational Mobility of Education: Evidence from the 2003 Severe Acute Respiratory Syndrome (SARS) Epidemic in China," GLO Discussion Paper Series 779, Global Labor Organization (GLO).
    17. Olivetti, Claudia & Pan, Jessica & Petrongolo, Barbara, 2024. "The evolution of gender in the labor market," Handbook of Labor Economics,, Elsevier.
    18. Kiessling, Lukas & Pinger, Pia & Seegers, Philipp & Bergerhoff, Jan, 2024. "Gender differences in wage expectations and negotiation," Labour Economics, Elsevier, vol. 87(C).
    19. Martina Querejeta Rabosto & Marisa Bucheli, 2021. "Motherhood Penalties: the Effect of Childbirth on Women's Employment Dynamics in a Developing Country," Documentos de Trabajo (working papers) 0121, Department of Economics - dECON.
    20. Kiessling, Lukas & Pinger, Pia & Seegers, Philipp K. & Bergerhoff, Jan, 2019. "Gender Differences in Wage Expectations: Sorting, Children, and Negotiation Styles," IZA Discussion Papers 12522, Institute of Labor Economics (IZA).

    More about this item

    JEL classification:

    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

    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:ifs:ifsewp:20/28. 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: Emma Hyman (email available below). General contact details of provider: https://edirc.repec.org/data/ifsssuk.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.