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Central School Exit Exams and Labor-Market Outcomes

  • Piopiunik, Marc

    ()

    (Ifo Institute for Economic Research)

  • Schwerdt, Guido

    ()

    (University of Konstanz)

  • Woessmann, Ludger

    ()

    (Ifo Institute for Economic Research)

Many countries use centralized exit exams as a governance devise of the school system. While abundant evidence suggests positive effects of central exams on achievement tests, previous research on university-bound students shows no effects on subsequent earnings. We suggest that labor-market effects may be more imminent for students leaving school directly for the labor market and, on rigid labor markets, for unemployment. Exploiting variation in exit-exam systems across German states, we find that central exams are indeed associated with higher earnings for students from school types directly bound for the labor market, as well as with lower unemployment.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6889.

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Length: 33 pages
Date of creation: Sep 2012
Date of revision:
Publication status: published in: European Journal of Political Economy, 2013, 31, 93-108
Handle: RePEc:iza:izadps:dp6889
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