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Do a Few Months of Compulsory Schooling Matter? The Education and Labour Market Impact of School Leaving Rules

Author Info

  • Del Bono, Emilia

    ()

    (ISER, University of Essex)

  • Galindo-Rueda, Fernando

    ()

    (Office of National Statistics)

Abstract

This paper contributes to the understanding of how compulsory schooling regulations affect educational attainment and subsequent labour market outcomes. It uses valuable information from a natural experiment driven by rules that allow for variation in legal dropout dates. Since the school leaving rule bites in the middle of a school year cohort, our identification approach is immune to other relative age/peer effects. Information on the precise month of birth enables us to show that students compelled to stay on in education as a result of this compulsory school leaving rule attain higher qualification levels and see their participation and employment probability as adults enhanced. We show that the estimated genuine impact of attaining an academic qualification on participation and employment is always statistically significant, in particular for women, although IV coefficients are usually below OLS estimates.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1233.

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Length: 54 pages
Date of creation: Aug 2004
Date of revision:
Handle: RePEc:iza:izadps:dp1233
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Keywords: school leaving rules; instrumental variables; education; participation; employment;

Find related papers by JEL classification:

  • I2 - Health, Education, and Welfare - - Education
  • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
  • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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  1. Arnaud Chevalier & Colm Harmon & Ian Walker & Yu Zhu, 2003. "Does education raise productivity, or just reflect it?," Working Papers 200304, School Of Economics, University College Dublin.
  2. Richard Blundell & Lorraine Dearden & Barbara Sianesi, 2003. "Evaluating the impact of education on earnings in the UK: Models, methods and results from the NCDS," IFS Working Papers W03/20, Institute for Fiscal Studies.
  3. Angrist, Joshua D & Krueger, Alan B, 1991. "Does Compulsory School Attendance Affect Schooling and Earnings?," The Quarterly Journal of Economics, MIT Press, vol. 106(4), pages 979-1014, November.
  4. Kevin Milligan & Enrico Moretti & Philip Oreopoulos, 2003. "Does Education Improve Citizenship? Evidence from the U.S. and the U.K," NBER Working Papers 9584, National Bureau of Economic Research, Inc.
  5. Jörn-Steffen Pischke, 2004. "The Impact of the School Year on Student Performance and Earnings: Evidence from the German short school years," CEE Discussion Papers 0034, Centre for the Economics of Education, LSE.
  6. Andrew Chesher, 2003. "Nonparametric identification under discrete variation," CeMMAP working papers CWP19/03, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  7. Jorn-Steffen Pischke, 2004. "The impact of the school year on student performance and earnings: evidence from the German short school years," LSE Research Online Documents on Economics 19474, London School of Economics and Political Science, LSE Library.
  8. Arnaud Chevalier, 2004. "Parental Education and Child’s Education - A Natural Experiment," Working Papers 200414, School Of Economics, University College Dublin.
  9. Plug, Erik J. S., 2001. "Season of birth, schooling and earnings," Journal of Economic Psychology, Elsevier, vol. 22(5), pages 641-660, October.
  10. John Bound & David A. Jaeger, 1996. "On the Validity of Season of Birth as an Instrument in Wage Equations: A Comment on Angrist & Krueger's "Does Compulsory School Attendance Affect Scho," NBER Working Papers 5835, National Bureau of Economic Research, Inc.
  11. Dearden, Lorraine, 1999. "The effects of families and ability on men's education and earnings in Britain1," Labour Economics, Elsevier, vol. 6(4), pages 551-567, November.
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Cited by:

  1. Patrick A. Puhani & Andrea M. Weber, 2006. "Does the Early Bird Catch the Worm? Instrumental Variable Estimates of Educational Effects of Age of School Entry in Germany," University of St. Gallen Department of Economics working paper series 2006 2006-02, Department of Economics, University of St. Gallen.
  2. Dickson, Matt & Smith, Sarah, 2011. "What Determines the Return to Education: An Extra Year or a Hurdle Cleared?," IZA Discussion Papers 5524, Institute for the Study of Labor (IZA).
  3. William Collier & Javier Valbuena & Yu Zhu, 2011. "What Determines Post-Compulsory Educational Choice? Evidence from the Longitudinal Survey of Young People in England," Studies in Economics 1112, School of Economics, University of Kent.
  4. Michael Fertig & Jochen Kluve, 2005. "The Effect of Age at School Entry on Educational Attainment in Germany," RWI Discussion Papers 0027, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
  5. Erich Battistin & Barbara Sianesi, 2006. "Misreported schooling and returns to education: evidence from the UK," CeMMAP working papers CWP07/06, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  6. Leigh, Andrew & Ryan, Chris, 2008. "Estimating returns to education using different natural experiment techniques," Economics of Education Review, Elsevier, vol. 27(2), pages 149-160, April.

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