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The long-term spillover effects of changes in the return to schooling

Ran Abramitzky, Victor Lavy () and Santiago Perez ()

Journal of Public Economics, 2021, vol. 196, issue C

Abstract: We study the spillover effects of a reform that substantially increased the returns to schooling in kibbutzim, socialist-oriented communities in Israel. This reform, which induced kibbutz students to improve their high-school academic performance, spilled over to their non-kibbutz peers who attended the same schools. In the short run, the peers improved their high-school outcomes and shifted to courses with higher financial returns. In the long run, they completed more years of post-secondary schooling and increased their earnings. We discuss two possible spillover channels: standard classroom peer effects and increased salience of the relationship between education and financial success.

Keywords: Return to schooling; Spillover effects (search for similar items in EconPapers)
Date: 2021
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Working Paper: The Long-Term Spillover Effects of Changes in the Return to Schooling (2018) Downloads
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DOI: 10.1016/j.jpubeco.2021.104369

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