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The effects of school entry laws on educational attainment and starting wages in an early tracking system

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  • Martina Zweimüller

Abstract

Empirical evidence suggests that relative age, which is determined by date of birth and the school entry cutoff date, has a causal effect on track choice. Using a sample of male labor market entrants drawn from Austrian register data, I analyze whether the initial assignment to different school tracks has persistent effects on educational attainment and earnings in the first years of the career. I estimate the reduced-form effect of the school entry law on starting wages and find a wage penalty of 1.1–2.0 percent for students born in August (the youngest) compared to students born in September (the oldest). The analysis of educational attainment suggests that significant differences in the type of education exist. Younger students are more likely to pursue an apprenticeship and less likely to have higher education. After five years of labor market experience, the wage penalty amounts to 0.8–1.1 percent, suggesting a persistent (albeit decreasing) negative effect of the school entry rule on labor market outcomes in an early tracking system.

Suggested Citation

  • Martina Zweimüller, 2013. "The effects of school entry laws on educational attainment and starting wages in an early tracking system," Economics working papers 2013-07, Department of Economics, Johannes Kepler University Linz, Austria.
    • Handle: RePEc:jku:econwp:2013_07
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    Cited by:

    1. Krause-Pilatus, Annabelle & Schüller, Simone, 2014. "Evidence and Persistence of Education Inequality in an Early-Tracking System: The German Case," IZA Discussion Papers 8545, Institute of Labor Economics (IZA).
    2. Julio Cáceres-Delpiano & Eugenio Giolito, 2024. "School starting age and the impact on school admission," Empirical Economics, Springer, vol. 67(1), pages 225-251, July.
    3. YAMAGUCHI Shintaro & ITO Hirotake & NAKAMURO Makiko, 2020. "Month-of-Birth Effects on Skills and Skill Formation," Discussion papers 20079, Research Institute of Economy, Trade and Industry (RIETI).
    4. Fumarco, Luca & Baert, Stijn, 2018. "Younger and Dissatisfied? Relative Age and Life-satisfaction in Adolescence," GLO Discussion Paper Series 278, Global Labor Organization (GLO).
    5. Peña, Pablo A., 2017. "Creating winners and losers: Date of birth, relative age in school, and outcomes in childhood and adulthood," Economics of Education Review, Elsevier, vol. 56(C), pages 152-176.
    6. Shintaro Yamaguchi & Hirotake Ito & Makiko Nakamuro, 2020. "Month-of-Birth Effects on Skills and Skill Formation," CIRJE F-Series CIRJE-F-1153, CIRJE, Faculty of Economics, University of Tokyo.
    7. Fumarco, Luca & Vandromme, Alessandro & Halewyck, Levi & Moens, Eline & Baert, Stijn, 2021. "Does Relative Age Affect Speed and Quality of Transition from School to Work?," IZA Discussion Papers 14977, Institute of Labor Economics (IZA).
    8. Shintaro Yamaguchi & Hirotake Ito & Makiko Nakamuro, 2020. "Month-of-Birth Effects on Skills and Skill Formation," RF Berlin - CReAM Discussion Paper Series 2015, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    9. Guo, Chuanyi & Wang, Xuening & Meng, Chen, 2023. "Does the early bird catch the worm? Evidence and interpretation on the long-term impact of school entry age in China," China Economic Review, Elsevier, vol. 77(C).

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    More about this item

    Keywords

    School entry law; early tracking; educational attainment; earnings; labor market entrants;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • 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

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