Is additional schooling worthless? Revising the zero returns to compulsory schooling in Germany

Konferenzbeitrag

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 8% per additional year of schooling. This result challenges a study by Pischke and von Wachter (2008) who find zero returns to schooling using the same survey data and reform. I show that their small and insignificant 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 eligibility for public transfers.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2018: Digitale Wirtschaft - Session: Labor and Unemployment V ; No. F21-V1

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): ZBW - Leibniz-Informationszentrum Wirtschaft
• (where): Kiel, Hamburg
• (when): 2018

Further information

• Handle: http://hdl.handle.net/10419/181528
• Last update: 10.03.2025, 11:44 AM CET