The Labor Market and Fertility Impacts of Decreasing the Compulsory Schooling Age

Anna Adamecz-Völgyi, Daniel Prinz (), Agnes Szabo-Morvai () and Sunčica Vujić ()
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Sunčica Vujić: University of Antwerp Prinsstraat 13 2000 Antwerpen and IZA Institute of Labour Economics Schaumburg-Lippe-Straße 5-9, 53113 Bonn

No 2140, CERS-IE WORKING PAPERS from Institute of Economics, Centre for Economic and Regional Studies

Abstract: While an extensive literature investigates the effects of longer schooling, we know very little about what happens when compulsory schooling is shortened. This paper looks at the effects of a reform in Hungary that decreased the school leaving age from 18 to 16. We show that the reform increased the probability of being neither in education nor in employment and being inactive at ages 16-18 substantially while its effects on employment are not significantly different from zero in most specifications. These effects are similar among boys and girls but strongly heterogeneous by social background and ability. The reform had a moderate effect on teenage motherhood on average, but it increased the probability of giving birth substantially among the most disadvantaged girls. We conclude that through its heterogenous effects, the reform is expected to widen social inequalities.

Keywords: education; teenage fertility; school leaving age; public works; NEET; inactivity (search for similar items in EconPapers)
JEL-codes: I2 J13 J20 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2021-12
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Citations: View citations in EconPapers (1)

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