IDEAS home Printed from https://ideas.repec.org/p/zbw/rwirep/733.html
   My bibliography  Save this paper

The long-term effects of long terms: Compulsory schooling reforms in Sweden

Author

Listed:
  • Fischer, Martin
  • Karlsson, Martin
  • Nilsson, Therese
  • Schwarz, Nina

Abstract

We evaluate the impact on earnings, pensions, and further labor market outcomes of two parallel educational reforms increasing instructional time in Swedish primary school. The reforms extended the annual term length and compulsory schooling by comparable amounts. We find striking differences in the effects of the two reforms: at 5%, the returns to the term length extension were at least half as high as OLS returns to education and benefited broad ranges of the population. The compulsory schooling extension had small (2%) albeit significant effects, which were possibly driven by an increase in post-compulsory schooling. Both reforms led to increased sorting into occupations with heavy reliance on basic skills.

Suggested Citation

  • Fischer, Martin & Karlsson, Martin & Nilsson, Therese & Schwarz, Nina, 2017. "The long-term effects of long terms: Compulsory schooling reforms in Sweden," Ruhr Economic Papers 733, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
  • Handle: RePEc:zbw:rwirep:733
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/173209/1/1011204681.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Huebener, Mathias & Kuger, Susanne & Marcus, Jan, 2017. "Increased instruction hours and the widening gap in student performance," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 15-34.
    2. Marc Piopiunik, 2014. "Intergenerational Transmission of Education and Mediating Channels: Evidence from a Compulsory Schooling Reform in Germany," Scandinavian Journal of Economics, Wiley Blackwell, vol. 116(3), pages 878-907, July.
    3. Bhalotra, Sonia R. & Karlsson, Martin & Nilsson, Therese & Schwarz, Nina, 2016. "Infant Health, Cognitive Performance and Earnings: Evidence from Inception of the Welfare State in Sweden," IZA Discussion Papers 10339, Institute of Labor Economics (IZA).
    4. Julien Grenet, 2013. "Is Extending Compulsory Schooling Alone Enough to Raise Earnings? Evidence from French and British Compulsory Schooling Laws," Post-Print halshs-00754526, HAL.
    5. Kalena E. Cortes & Joshua S. Goodman & Takako Nomi, 2015. "Intensive Math Instruction and Educational Attainment: Long-Run Impacts of Double-Dose Algebra," Journal of Human Resources, University of Wisconsin Press, vol. 50(1), pages 108-158.
    6. Hans van Kippersluis, & Owen O’Donnell & Eddy van Doorslaer, 2011. "Long-Run Returns to Education: Does Schooling Lead to an Extended Old Age?," Journal of Human Resources, University of Wisconsin Press, vol. 46(4), pages 695-721.
    7. Fischer, Martin & Karlsson, Martin & Nilsson, Therese, 2013. "Effects of Compulsory Schooling on Mortality: Evidence from Sweden," Working Paper Series 992, Research Institute of Industrial Economics.
    8. Maria A. Cattaneo & Chantal Oggenfuss & Stefan C. Wolter, 2017. "The more, the better? The impact of instructional time on student performance," Education Economics, Taylor & Francis Journals, vol. 25(5), pages 433-445, September.
    9. Steven G. Rivkin & Jeffrey C. Schiman, 2015. "Instruction Time, Classroom Quality, and Academic Achievement," Economic Journal, Royal Economic Society, vol. 125(588), pages 425-448, November.
    10. Paul J. Devereux & Robert A. Hart, 2010. "Forced to be Rich? Returns to Compulsory Schooling in Britain," Economic Journal, Royal Economic Society, vol. 120(549), pages 1345-1364, December.
    11. Damon Clark & Heather Royer, 2013. "The Effect of Education on Adult Mortality and Health: Evidence from Britain," American Economic Review, American Economic Association, vol. 103(6), pages 2087-2120, October.
    12. Jörn-Steffen Pischke, 2007. "The Impact of Length of the School Year on Student Performance and Earnings: Evidence From the German Short School Years," Economic Journal, Royal Economic Society, vol. 117(523), pages 1216-1242, October.
    13. Holmlund, Helena, 2007. "A Researcher's Guide to the Swedish Compulsory School Reform," Working Paper Series 9/2007, Stockholm University, Swedish Institute for Social Research.
    14. Costas Meghir & Mårten Palme, 2005. "Educational Reform, Ability, and Family Background," American Economic Review, American Economic Association, vol. 95(1), pages 414-424, March.
    15. Albouy, Valerie & Lequien, Laurent, 2009. "Does compulsory education lower mortality?," Journal of Health Economics, Elsevier, vol. 28(1), pages 155-168, January.
    16. Pekkarinen, Tuomas & Uusitalo, Roope & Kerr, Sari, 2009. "School tracking and intergenerational income mobility: Evidence from the Finnish comprehensive school reform," Journal of Public Economics, Elsevier, vol. 93(7-8), pages 965-973, August.
    17. Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2011. "Too Young to Leave the Nest? The Effects of School Starting Age," The Review of Economics and Statistics, MIT Press, vol. 93(2), pages 455-467, May.
    18. Giorgio Brunello & Daniele Fabbri & Margherita Fort, 2013. "The Causal Effect of Education on Body Mass: Evidence from Europe," Journal of Labor Economics, University of Chicago Press, vol. 31(1), pages 195-223.
    19. 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.
    20. Philip Oreopoulos, 2006. "Estimating Average and Local Average Treatment Effects of Education when Compulsory Schooling Laws Really Matter," American Economic Review, American Economic Association, vol. 96(1), pages 152-175, March.
    21. 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.
    22. Jörn-Steffen Pischke & Till von Wachter, 2008. "Zero Returns to Compulsory Schooling in Germany: Evidence and Interpretation," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 592-598, August.
    23. Betts, Julian R, 1995. "Does School Quality Matter? Evidence from the National Longitudinal Survey of Youth," The Review of Economics and Statistics, MIT Press, vol. 77(2), pages 231-250, May.
    24. Giorgio Brunello & Guglielmo Weber & Christoph T. Weiss, 2017. "Books are Forever: Early Life Conditions, Education and Lifetime Earnings in Europe," Economic Journal, Royal Economic Society, vol. 127(600), pages 271-296, March.
    25. Björklund, Anders & Jäntti, Markus & Lindquist, Matthew J., 2009. "Family background and income during the rise of the welfare state: Brother correlations in income for Swedish men born 1932-1968," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 671-680, June.
    26. Kemptner, Daniel & Jürges, Hendrik & Reinhold, Steffen, 2011. "Changes in compulsory schooling and the causal effect of education on health: Evidence from Germany," Journal of Health Economics, Elsevier, vol. 30(2), pages 340-354, March.
    27. Hübener, Mathias & Kuger, Susanne & Marcus, Jan, 2016. "Increased Instruction Hours and the Widening Gap in Student Performance," VfS Annual Conference 2016 (Augsburg): Demographic Change 145611, Verein für Socialpolitik / German Economic Association.
    28. Rasyad A. Parinduri, 2017. "Does Education Improve Health? Evidence from Indonesia," Journal of Development Studies, Taylor & Francis Journals, vol. 53(9), pages 1358-1375, September.
    29. Fitzpatrick, Maria D. & Grissmer, David & Hastedt, Sarah, 2011. "What a difference a day makes: Estimating daily learning gains during kindergarten and first grade using a natural experiment," Economics of Education Review, Elsevier, vol. 30(2), pages 269-279, April.
    30. C. Kirabo Jackson & Rucker C. Johnson & Claudia Persico, 2016. "The Effects of School Spending on Educational and Economic Outcomes: Evidence from School Finance Reforms," The Quarterly Journal of Economics, Oxford University Press, vol. 131(1), pages 157-218.
    31. Agüero, Jorge M. & Beleche, Trinidad, 2013. "Test-Mex: Estimating the effects of school year length on student performance in Mexico," Journal of Development Economics, Elsevier, vol. 103(C), pages 353-361.
    32. Anders Bohlmark & Matthew J. Lindquist, 2006. "Life-Cycle Variations in the Association between Current and Lifetime Income: Replication and Extension for Sweden," Journal of Labor Economics, University of Chicago Press, vol. 24(4), pages 879-900, October.
    33. repec:hrv:hksfac:34298862 is not listed on IDEAS
    34. Margherita Fort & Nicole Schneeweis & Rudolf Winter‐Ebmer, 2016. "Is Education Always Reducing Fertility? Evidence from Compulsory Schooling Reforms," Economic Journal, Royal Economic Society, vol. 126(595), pages 1823-1855, September.
    35. Joshua Hyman, 2017. "Does Money Matter in the Long Run? Effects of School Spending on Educational Attainment," American Economic Journal: Economic Policy, American Economic Association, vol. 9(4), pages 256-280, November.
    36. Battistin, Erich & Meroni, Elena Claudia, 2016. "Should we increase instruction time in low achieving schools? Evidence from Southern Italy," Economics of Education Review, Elsevier, vol. 55(C), pages 39-56.
    37. Parinduri, Rasyad A., 2014. "Do children spend too much time in schools? Evidence from a longer school year in Indonesia," Economics of Education Review, Elsevier, vol. 41(C), pages 89-104.
    38. Cygan-Rehm, Kamila & Maeder, Miriam, 2013. "The effect of education on fertility: Evidence from a compulsory schooling reform," Labour Economics, Elsevier, vol. 25(C), pages 35-48.
    39. Julien Grenet, 2013. "Is Extending Compulsory Schooling Alone Enough to Raise Earnings? Evidence from French and British Compulsory Schooling Laws," Scandinavian Journal of Economics, Wiley Blackwell, vol. 115(1), pages 176-210, January.
    40. Sandberg, Lars G., 1979. "The Case of the Impoverished Sophisticate: Human Capital and Swedish Economic Growth before World War I," The Journal of Economic History, Cambridge University Press, vol. 39(1), pages 225-241, March.
    41. Richard B. Freeman & Robert Topel & Birgitta Swedenborg, 1997. "Introduction to "The Welfare State in Transition: Reforming the Swedish Model"," NBER Chapters, in: The Welfare State in Transition: Reforming the Swedish Model, pages 1-32, National Bureau of Economic Research, Inc.
    42. Emma Tominey, 2010. "The Timing of Parental Income and Child Outcomes: The Role of Permanent and Transitory Shocks," Discussion Papers 10/21, Department of Economics, University of York.
    43. Sims, David P., 2008. "Strategic responses to school accountability measures: It's all in the timing," Economics of Education Review, Elsevier, vol. 27(1), pages 58-68, February.
    44. Richard B. Freeman & Robert Topel & Birgitta Swedenborg, 1997. "The Welfare State in Transition: Reforming the Swedish Model," NBER Books, National Bureau of Economic Research, Inc, number free97-1.
    45. Bellei, Cristián, 2009. "Does lengthening the school day increase students' academic achievement? Results from a natural experiment in Chile," Economics of Education Review, Elsevier, vol. 28(5), pages 629-640, October.
    46. Crespo, Laura & López-Noval, Borja & Mira, Pedro, 2014. "Compulsory schooling, education, depression and memory: New evidence from SHARELIFE," Economics of Education Review, Elsevier, vol. 43(C), pages 36-46.
    47. Christian Belzil & Jorgen Hansen & Xingfei Liu, 2017. "Dynamic skill accumulation, education policies, and the return to schooling," Quantitative Economics, Econometric Society, vol. 8(3), pages 895-927, November.
    48. Nicole Schneeweis & Vegard Skirbekk & Rudolf Winter-Ebmer, 2014. "Does Education Improve Cognitive Performance Four Decades After School Completion?," Demography, Springer;Population Association of America (PAA), vol. 51(2), pages 619-643, April.
    49. Per-Anders Edin & Robert Topel, 1997. "Wage Policy and Restructuring: The Swedish Labor Market since 1960," NBER Chapters, in: The Welfare State in Transition: Reforming the Swedish Model, pages 155-202, National Bureau of Economic Research, Inc.
    50. Giorgio Brunello & Guglielmo Weber & Christoph T. Weiss, 2017. "Books are Forever: Early Life Conditions, Education and Lifetime Earnings in Europe," Economic Journal, Royal Economic Society, vol. 127(600), pages 271-296, March.
    51. Adrian Adermon & Magnus Gustavsson, 2015. "Job Polarization and Task-Biased Technological Change: Evidence from Sweden, 1975–2005," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(3), pages 878-917, July.
    52. Emma Tominey, 2010. "The Timing of Parental Income and Child Outcomes: The Role of Permanent and Transitory Shocks," CEE Discussion Papers 0120, Centre for the Economics of Education, LSE.
    53. Claire Crawford & Lorraine Dearden & Ellen Greaves, 2014. "The drivers of month-of-birth differences in children's cognitive and non-cognitive skills," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 177(4), pages 829-860, October.
    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. Obrizan, Maksym & Karlsson, Martin & Matvieiev, Mykhailo, 2020. "The Macroeconomic Impact of the 1918–19 Influenza Pandemic in Sweden," MPRA Paper 98910, University Library of Munich, Germany.
    2. Hasan,Amer & Nakajima,Nozomi & Rangel,Marcos A., 2020. "Mama Knows (and Does) Best : Maternal Schooling Opportunities and Child Development in Indonesia," Policy Research Working Paper Series 9355, The World Bank.
    3. Martin Fischer & Ulf-G Gerdtham & Gawain Heckley & Martin Karlsson & Gustav Kjellsson & Therese Nilsson, 2021. "Education and health: long-run effects of peers, tracking and years," Economic Policy, CEPR;CES;MSH, vol. 36(105), pages 3-49.
    4. Norman Bannenberg & Oddvar Førland & Tor Iversen & Martin Karlsson & Henning Øien, 2021. "Preventive Home Visits," American Journal of Health Economics, University of Chicago Press, vol. 7(4), pages 457-496.
    5. Lepinteur, Anthony & Nieto, Adrìan, 2021. "All about the money ? The gendered effect of education on industrial and occupational sorting," CEPREMAP Working Papers (Docweb) 2109, CEPREMAP.
    6. Deole, Sumit S. & Zeydanli, Tugba, 2021. "Does education predict gender role attitudes?: Evidence from European datasets," GLO Discussion Paper Series 793, Global Labor Organization (GLO).
    7. Hofmarcher, Thomas, 2021. "The effect of education on poverty: A European perspective," Economics of Education Review, Elsevier, vol. 83(C).

    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. Fischer, Martin & Karlsson, Martin & Nilsson, Therese & Schwarz, Nina, 2016. "The Sooner the Better? Compulsory Schooling Reforms in Sweden," IZA Discussion Papers 10430, Institute of Labor Economics (IZA).
    2. Albarrán, Pedro & Hidalgo-Hidalgo, Marisa & Iturbe-Ormaetxe, Iñigo, 2020. "Education and adult health: Is there a causal effect?," Social Science & Medicine, Elsevier, vol. 249(C).
    3. Hofmarcher, Thomas, 2021. "The effect of education on poverty: A European perspective," Economics of Education Review, Elsevier, vol. 83(C).
    4. de New, Sonja C. & Schurer, Stefanie & Sulzmaier, Dominique, 2021. "Gender differences in the lifecycle benefits of compulsory schooling policies," European Economic Review, Elsevier, vol. 140(C).
    5. Pedro Albarran Pérez & Marisa Hidalgo Hidalgo & Iñigo Iturbe-Ormaetxe Kortajarene, 2017. "Schooling and adult health: Can education overcome bad early-life conditions?," Working Papers. Serie AD 2017-09, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    6. Huebener, Mathias & Marcus, Jan, 2017. "Compressing instruction time into fewer years of schooling and the impact on student performance," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 1-14.
    7. Janke, Katharina & Johnston, David W. & Propper, Carol & Shields, Michael A., 2018. "The Causal Effect of Education on Chronic Health Conditions," IZA Discussion Papers 11353, Institute of Labor Economics (IZA).
    8. Everding, Jakob, 2019. "Heterogeneous spillover effects of children's education on parental mental health," hche Research Papers 2019/18, University of Hamburg, Hamburg Center for Health Economics (hche).
    9. Kamila Cygan-Rehm, 2018. "Is Additional Schooling Worthless? Revising Zero Returns to Compulsory Schooling in Germany," CESifo Working Paper Series 7191, CESifo.
    10. Janke, Katharina & Johnston, David W. & Propper, Carol & Shields, Michael A., 2020. "The causal effect of education on chronic health conditions in the UK," Journal of Health Economics, Elsevier, vol. 70(C).
    11. Hamad, Rita & Elser, Holly & Tran, Duy C. & Rehkopf, David H. & Goodman, Steven N., 2018. "How and why studies disagree about the effects of education on health: A systematic review and meta-analysis of studies of compulsory schooling laws," Social Science & Medicine, Elsevier, vol. 212(C), pages 168-178.
    12. Kamila Cygan‐Rehm, 2022. "Are there no wage returns to compulsory schooling in Germany? A reassessment," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 37(1), pages 218-223, January.
    13. Cygan-Rehm, Kamila, 2018. "Is additional schooling worthless? Revising the zero returns to compulsory schooling in Germany," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181528, Verein für Socialpolitik / German Economic Association.
    14. Avendano, Mauricio & de Coulon, Augustin & Nafilyan, Vahé, 2020. "Does longer compulsory schooling affect mental health? Evidence from a British reform," Journal of Public Economics, Elsevier, vol. 183(C).
    15. Gathmann, Christina & Jürges, Hendrik & Reinhold, Steffen, 2015. "Compulsory schooling reforms, education and mortality in twentieth century Europe," Social Science & Medicine, Elsevier, vol. 127(C), pages 74-82.
    16. Thompson, Paul N., 2021. "Is four less than five? Effects of four-day school weeks on student achievement in Oregon," Journal of Public Economics, Elsevier, vol. 193(C).
    17. Huebener, Mathias & Kuger, Susanne & Marcus, Jan, 2017. "Increased instruction hours and the widening gap in student performance," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 15-34.
    18. Barrios-Fernández, Andrés & Bovini, Giulia, 2021. "It’s time to learn: School institutions and returns to instruction time," Economics of Education Review, Elsevier, vol. 80(C).
    19. Naci Mocan & Luiza Pogorelova, 2014. "Compulsory Schooling Laws and Formation of Beliefs: Education, Religion and Superstition," NBER Working Papers 20557, National Bureau of Economic Research, Inc.
    20. Quis, Johanna Sophie & Reif, Simon, 2017. "Health effects of instruction intensity: Evidence from a natural experiment in German high-schools," BERG Working Paper Series 123, Bamberg University, Bamberg Economic Research Group.

    More about this item

    Keywords

    educational reforms; compulsory schooling; term length; returns to education;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

    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:zbw:rwirep:733. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/rwiesde.html .

    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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/rwiesde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.