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

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  • Lorenzo Cappellari
  • Daniele Checchi
  • Marco Ovidi

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 drop-ping 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, 2023. "The effects of schooling on cognitive skills: evidence from education expansions," LISER Working Paper Series 2023-03, Luxembourg Institute of Socio-Economic Research (LISER).
    • Handle: RePEc:irs:cepswp:2023-03
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    2. 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).
    3. 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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    More about this item

    Keywords

    Cognitive skills; Educational Policies; Returns to schooling;
    All these keywords.

    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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