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The Returns to Education in Arkansas: Evidence from the 1987 Compulsory Education Law

Author

Listed:
  • Patrinos, Harry

    (University of Arkansas, Fayetteville)

  • Rivera-Olvera, Angelica

    (World Bank)

Abstract

This paper estimates the returns to education in Arkansas — one of the last states to extend compulsory schooling — using ACS 2023 data and the 1987 Compulsory Schooling Law (CSL) reform as an instrument. OLS estimates imply returns of 9.5-10.4 percent per year of schooling. The CSL reform increased schooling among compliers by 0.67-0.73 years and yields IV returns of 10.4-11.7 percent, exceeding OLS estimates. The results indicate that those compelled to remain in school benefited most, consistent with global evidence on higher causal returns for disadvantaged students.

Suggested Citation

  • Patrinos, Harry & Rivera-Olvera, Angelica, 2026. "The Returns to Education in Arkansas: Evidence from the 1987 Compulsory Education Law," IZA Discussion Papers 18364, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp18364
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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