Do a Few Months of Compulsory Schooling Matter? The Education and Labour Market Impact of School Leaving Rules

54 Pages Posted: 10 Aug 2004

See all articles by Emilia Del Bono

Emilia Del Bono

Institute for Social and Economic Research; IZA Institute of Labor Economics

Fernando Galindo-Rueda

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP); Institute for the Study of Labor (IZA)

Date Written: August 2004

Abstract

This paper contributes to the understanding of how compulsory schooling regulations affect educational attainment and subsequent labour market outcomes. It uses valuable information from a natural experiment driven by rules that allow for variation in legal dropout dates. Since the school leaving rule bites in the middle of a school year cohort, our identification approach is immune to other relative age/peer effects. Information on the precise month of birth enables us to show that students compelled to stay on in education as a result of this compulsory school leaving rule attain higher qualification levels and see their participation and employment probability as adults enhanced. We show that the estimated genuine impact of attaining an academic qualification on participation and employment is always statistically significant, in particular for women, although IV coefficients are usually below OLS estimates.

Keywords: education, school leaving rules, instrumental variables, participation, employment

JEL Classification: I2, C13, J24

Suggested Citation

Del Bono, Emilia and Galindo-Rueda, Fernando, Do a Few Months of Compulsory Schooling Matter? The Education and Labour Market Impact of School Leaving Rules (August 2004). Available at SSRN: https://ssrn.com/abstract=574065

Emilia Del Bono

Institute for Social and Economic Research ( email )

Wivenhoe Park
Colchester CO4 3SQ
United Kingdom

HOME PAGE: http://www.iser.essex.ac.uk/staff/staff-details.php?personID=678

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Fernando Galindo-Rueda (Contact Author)

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP) ( email )

Houghton Street
London WC2A 2AE
United Kingdom

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

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