The Effect of Compulsory Schooling on Skills: Evidence from a Reform in Germany
No 313, ifo Working Paper Series from ifo Institute - Leibniz Institute for Economic Research at the University of Munich
Based on high-quality skill data from PIAAC, this paper provides evidence on the effect of schooling on labor-market relevant cognitive skills. For identification, I exploit the staggered introduction of a compulsory ninth grade in basic track schools across German states, as well as a simultaneous reform that introduced short school years to harmonize the start of the school year nation-wide. Instrumental-variable results suggest that the additional year of compulsory schooling increased numeracy skills of basic-track students by about 0.2 standard deviations. Using superior skill data, the results contrast with previous evidence of zero skill effects of compulsory schooling in Germany
Keywords: Returns to education; compulsory schooling reform; skills; PIAAC (search for similar items in EconPapers)
JEL-codes: I21 I24 C26 (search for similar items in EconPapers)
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