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Book part
Publication date: 30 August 2019

Theodore F. Figinski, Alicia Lloro and Phillip Li

This study provides new evidence on the effect of compulsory schooling laws on educational attainment and earnings. First, we re-examine the effect of compulsory schooling

Abstract

This study provides new evidence on the effect of compulsory schooling laws on educational attainment and earnings. First, we re-examine the effect of compulsory schooling laws for cohorts born between 1900 and 1964 (“older cohorts”) using newly available data that match administrative earnings records with the survey data. Second, we provide among the first evidence on cohorts born between 1977 and 1996 (“younger cohorts”). Our findings suggest that compulsory schooling laws increased the educational attainment of older cohorts, but had no economically significant effect on the educational attainment of younger cohorts. We are unable to find consistent evidence that compulsory schooling laws increased the earnings of older cohorts – a finding which adds to growing evidence that compulsory schooling laws are less beneficial than earlier studies suggest.

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Topics in Identification, Limited Dependent Variables, Partial Observability, Experimentation, and Flexible Modeling: Part A
Type: Book
ISBN: 978-1-78973-241-2

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Book part
Publication date: 15 December 2010

Jasmina Spasojević

Understanding health determinants and exactly how they affect health is an important social policy question. Empirical tests in the health literature typically find that…

Abstract

Understanding health determinants and exactly how they affect health is an important social policy question. Empirical tests in the health literature typically find that the number of years of formal schooling completed is the most important correlate of good health. However, there is less consensus as to whether this correlation reflects a causal relationship between more schooling and better health. This chapter capitalizes on a unique social experiment: the 1950 Swedish comprehensive school reform, which was implemented in stages and by municipal areas, through which people born between 1945 and 1955 went through two different school systems (one of which required at least one more year of schooling). It uses an instrumental variables technique to estimate formal schooling's causal effect on adult health in Sweden. The instrumental variable for degree of education (schooling) generated from compulsory school reform yields a consistent estimate of education's causal impact on health, as measured by an bad health index and of body mass index in the healthy range. The additional schooling generated by Sweden's compulsory school reform produces improved adult health (controlling for cohort and county effects, family background characteristics, and individual income).

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Current Issues in Health Economics
Type: Book
ISBN: 978-0-85724-155-9

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Book part
Publication date: 31 December 2010

Barry R. Chiswick and Paul W. Miller

The payoff to schooling among the foreign born in the United States is only around one-half of the payoff for the native born. This paper examines whether this…

Abstract

The payoff to schooling among the foreign born in the United States is only around one-half of the payoff for the native born. This paper examines whether this differential is related to the quality of the schooling immigrants acquired abroad. The paper uses the overeducation/required education/undereducation specification of the earnings equation to explore the transmission mechanism for the origin-country school-quality effects. It also assesses the empirical merits of two alternative measures of the quality of schooling undertaken abroad. The results suggest that a higher quality of schooling acquired abroad is associated with a higher payoff to schooling among immigrants in the US labor market. This higher payoff is associated with a higher payoff to correctly matched schooling in the United States, and a greater (in absolute value) penalty associated with years of undereducation. A set of predictions is presented to assess the relative importance of these channels, and the undereducation channel is shown to be the more influential factor. This channel is linked to greater positive selection in migration among those from countries with better quality schools. In other words, it is the impact of origin-country school quality on the immigrant selection process, rather than the quality of immigrants' schooling per se, that is the major driver of the lower payoff to schooling among immigrants in the United States.

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Migration and Culture
Type: Book
ISBN: 978-0-85724-153-5

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Article
Publication date: 1 June 2005

Thomas K. Bauer, Patrick J. Dross and John P. Haisken‐DeNew

The purpose of this paper is to examine the role of sheepskin effects in the return to education in Japan.

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Abstract

Purpose

The purpose of this paper is to examine the role of sheepskin effects in the return to education in Japan.

Design/methodology/approach

The paper provides a short description of the Japanese schooling and recruitment system. It then describes the data set and the empirical approach. Estimation results are presented for the various specifications. The baseline specification closely follows existing studies for the USA to facilitate comparability across the two countries. The paper further investigates whether there are significant firm‐size differences in the estimated sheepskin effects and whether sheepskin effects disappear with increasing job tenure.

Findings

The estimation results indicate that sheepskin effects explain about 50 percent of the total returns to schooling. The paper further finds that education as a signal is only important for workers in small firms with the size of these effects being similar to comparable estimates for the USA. Finally, the estimated degree effects decrease with firm tenure, in particular for small firms. These results could be explained by the particular recruitment system of large firms in Japan, which makes university diploma as a screening device unimportant for large firms and the admission policy of Japanese universities.

Originality/value

By investigating the role of sheepskin effects in a labor market that differs substantially from the labor market in the USA, the paper provides additional insights to the human capital theory‐screening hypothesis debate.

Details

International Journal of Manpower, vol. 26 no. 4
Type: Research Article
ISSN: 0143-7720

Keywords

Book part
Publication date: 11 May 2017

Lorenzo Cappellari, Paolo Castelnovo, Daniele Checchi and Marco Leonardi

We use OECD-PIAAC data to estimate the earnings effects of both years of education and of numerical skills. Our identification strategy exploits differential exposure to…

Abstract

We use OECD-PIAAC data to estimate the earnings effects of both years of education and of numerical skills. Our identification strategy exploits differential exposure to educational reforms across birth cohorts and countries. We find that education has the strongest earnings effect. A one standard deviation increase in years of education raises earnings by almost 22 percentage points (corresponding to a return to education above 7 percentage points), which compares with a lower percentage points return to an equivalent increase in numerical skills. Our results suggest that the same set of unobservables drives the accumulation of both formal years of education and numeracy skills. OLS estimates underestimate returns to human capital, consistently with the idea that educational reforms favor the human capital acquisition of abler children from disadvantaged parental backgrounds. When we consider numerical skills alone education reforms cannot identify any significant effect of skills on wages, however, when we jointly consider schooling and skills as endogenous factors in a recursive structure we find a significant role for skills in determining wages.

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Skill Mismatch in Labor Markets
Type: Book
ISBN: 978-1-78714-377-7

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Book part
Publication date: 17 December 2003

Sara R Curran, Chang Y Chung, Wendy Cadge and Anchalee Varangrat

Within individual countries, the paths towards increasing educational attainment are not always linear and individuals are not equally affected. Differences between boys…

Abstract

Within individual countries, the paths towards increasing educational attainment are not always linear and individuals are not equally affected. Differences between boys’ and girls’ educational attainments are a common expression of this inequality as boys are more often favored for continued schooling. We examine the importance of birth cohort, sibship size, migration, and school accessibility for explaining both the gender gap and its narrowing in secondary schooling in one district in Northeast Thailand between 1984 and 1994. Birth cohort is a significant explanation for the narrowing of the gender gap. Migration, sibship size, and remote village location are important explanations for limited secondary education opportunities, especially for girls.

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Inequality Across Societies: Familes, Schools and Persisting Stratification
Type: Book
ISBN: 978-0-76231-061-6

Article
Publication date: 26 May 2020

Leszek Wincenciak

The purpose of this study is to provide the estimates of returns to schooling using consistent methodology and comparable set of data for a long time horizon for a country…

Abstract

Purpose

The purpose of this study is to provide the estimates of returns to schooling using consistent methodology and comparable set of data for a long time horizon for a country undergoing economic transition. Second, the paper aims to verify if returns to schooling in Poland were pro-cyclical or counter-cyclical.

Design/methodology/approach

The paper is based on the human capital theory in estimating the wage returns to years of schooling controlling additionally for unemployment rates at a regional level. Data come from a collection of Polish individual LFS waves for the period 1995–2017.

Findings

Returns to schooling in Poland were increasing until 2006 and declining afterwards unveiling the supply side effects domination. The estimates suggested counter-cyclicality of returns in Poland.

Research limitations/implications

Using LFS data made it impossible to control for ability bias therefore it is possible that the estimates are somewhat biased (the literature however suggests that the extent of the bias is likely to be small). It might still be argued that using consistent methodology for the whole period of analysis still offers valuable insight into returns evolution.

Originality/value

This paper finds a reversal of returns trend after 2006 suggesting the period after accession to EU exhibited a supply side effect domination. The findings on counter-cyclicality of returns to education in Poland have not yet been documented in the literature.

Details

International Journal of Manpower, vol. 41 no. 8
Type: Research Article
ISSN: 0143-7720

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Article
Publication date: 16 January 2019

Elena Meschi, Joanna Swaffield and Anna Vignoles

The purpose of this paper is to assess the role of local labour market conditions and pupil educational attainment as primary determinants of the post-compulsory schooling

Abstract

Purpose

The purpose of this paper is to assess the role of local labour market conditions and pupil educational attainment as primary determinants of the post-compulsory schooling decision.

Design/methodology/approach

Through the specification of a nested logit model, the restrictive independence of irrelevant alternatives (IIA) assumption inherent in the multinomial logit (MNL) model is relaxed across multiple unordered outcomes.

Findings

The analysis shows that the factors influencing schooling decisions differ for males and females. For females, on average, the key drivers of the schooling decision are expected wage returns based on youth educational attainment, attitudes to school and parental aspirations, rather than local labour market conditions. For males, higher local unemployment rates encourage greater investment in education.

Originality/value

The contribution of this paper to the existing literature is threefold. First, a nested logit model is proposed as an alternative to a MNL. The former can formally incorporate the structured and sequential decision-making process that youths may engage with in relation to the post-compulsory schooling decision, as well as relaxing the restrictive IIA assumption inherent in the MNL across multiple unordered outcomes, an issue the authors discuss in more detail in the Methodology section below. Second, the analysis is based on extremely rich socio-economic data from the Longitudinal Study of Young People in England, matched to local labour market data and administrative data from the National Pupil Database and Pupil Level Annual School Census, which provide a broad set of unusually high-quality measures of prior attainment. The authors argue that such high-quality data and an appropriate model specification allows identification of the determinants of the post-compulsory decision in a more detailed manner than many previous analyses. Third, the data have the scale necessary to consider whether the determinants of post-compulsory schooling decisions vary by gender, a particularly important issue given the differential education participation rates of males and females (e.g. in this cohort, females are about 10 percentage points more likely to go on to higher education in the UK than males), and the gendered choices of occupation (see, e.g. Bertrand, 2011). The work will, therefore, provide recent empirical evidence from England on gender differences in the determinants of education choices.

Book part
Publication date: 20 May 2017

Prabal K. De

Child immunization is widely recognized as a cost-effective preventive medicine. Unfortunately, in India about 50% of the eligible children aged 12–23 months miss some…

Abstract

Child immunization is widely recognized as a cost-effective preventive medicine. Unfortunately, in India about 50% of the eligible children aged 12–23 months miss some essential vaccination. Though a positive association between maternal education and markers of child health like immunization has been long established, the literature has struggled to find a causal relationship, mainly because education is inextricably correlated with other socioeconomic variables like income. In this chapter, I propose a new instrument for women’s education in India using the following facts. First, due to lack of sanitary facilities in schools, particularly rural schools, large number of girls drop out of school once they reach puberty. Second, age at menarche is largely determined by biological factors and not social factors. Together, age at menarche can explain variations in schooling, yet be independent of outcome variables like child immunization. I find that additional years of maternal schooling (conditional on strictly positive years of schooling) do increase the probability of complete immunization of children.

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Human Capital and Health Behavior
Type: Book
ISBN: 978-1-78635-466-2

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Book part
Publication date: 31 December 2010

Ira N. Gang

This chapter examines the differential effects of mother's schooling and father's schooling on the acquisition of schooling by their offspring. It does this in a…

Abstract

This chapter examines the differential effects of mother's schooling and father's schooling on the acquisition of schooling by their offspring. It does this in a “cross-cultural” context by comparing results across three countries: Germany, Hungary, and the Former Soviet Union. It looks within these countries, by gender, at different ethnic subgroups. Evidence is found, generally, that father's schooling is more important than mother's, but this does vary by ethnic group. Mother's schooling plays a relatively larger role for females.

Details

Migration and Culture
Type: Book
ISBN: 978-0-85724-153-5

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