The Returns to Education in Arkansas: Evidence from the 1987 Compulsory Education Law

Harry Patrinos and Angelica Rivera-Olvera ()
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Angelica Rivera-Olvera: World Bank

No 18364, IZA Discussion Papers from IZA Network @ LISER

Abstract: This paper estimates the returns to education in Arkansas — one of the last states to extend compulsory schooling — using ACS 2023 data and the 1987 Compulsory Schooling Law (CSL) reform as an instrument. OLS estimates imply returns of 9.5-10.4 percent per year of schooling. The CSL reform increased schooling among compliers by 0.67-0.73 years and yields IV returns of 10.4-11.7 percent, exceeding OLS estimates. The results indicate that those compelled to remain in school benefited most, consistent with global evidence on higher causal returns for disadvantaged students.

Keywords: returns to education; human capital; wage differentials; earnings function; Arkansas; instrumental variables; compulsory schooling (search for similar items in EconPapers)
JEL-codes: C26 I21 I26 J24 J31 (search for similar items in EconPapers)
Date: 2026-02
New Economics Papers: this item is included in nep-edu and nep-uep
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Working Paper: The Returns to Education in Arkansas: Evidence from the 1987 Compulsory Education Law (2026)
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