Is Additional Schooling Worthless? Revising Zero Returns to Compulsory Schooling in Germany

Arbeitspapier

This study estimates the effect of compulsory schooling on earnings. For identification, I exploit a German reform that extended the duration of secondary schooling in the 1960s. I find that hourly wages increase by 6%-8% per additional year of schooling. This result challenges prior findings for Germany of zero returns to schooling, obtained by using the same survey data and reform. I show that the earlier estimates suffer from unconsidered institutional details. A complementary analysis using social security records confirms significant effects on earnings, but yields no effects on employment and take-up of public transfers.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 7191

Classification and Topics

• Classification: Wirtschaft ; Analysis of Education ; Returns to Education ; Wage Level and Structure; Wage Differentials

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Cygan-Rehm, Kamila
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2018

Further information

• Handle: http://hdl.handle.net/10419/185389
• Last update: 10.03.2025, 11:43 AM CET