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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