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Central school exit exams and labor-market outcomes
Institution:1. Ifo Institute for Economic Research at the University of Munich, Poschingerstr. 5, 81679 Munich, Germany;2. CESifo, Germany;3. IZA, Germany;1. Oral and Maxillofacial Surgery Department, University Hospitals Coventry and Warwickshire, Clifford Bridge Road, Coventry, CV2 2DX, United Kingdom;2. Department of Plastic and Reconstructive Surgery, Ninewells Hospital, Dundee, United Kingdom;3. Oral Surgery Department, Guys Dental Institute, Guys & St Thomas NHS Foundation Trust, London, United Kingdom;4. Nottingham University Hospitals NHS Trust, Nottingham, United Kingdom;5. Department of Plastic and Reconstructive Surgery, Queen Alexandra Hospital, Portsmouth, United Kingdom;6. Department of Surgery, School of Medicine, College of Health Sciences Addis Ababa University, Addis Ababa, Ethiopia;7. 35 avenue des pins 13013, Marseille, France;8. Department of Head and Neck Surgery, University College London Hospital, London, United Kingdom;1. Department of Economics, 327 Waters Hall, Kansas State University, Manhattan, KS 66506, United States;2. IHS Global Insight, Beijing, China;1. School of Economics, Singapore Management University, 90 Stamford Road, 178903, Singapore;2. Division of Economics, School of Humanities and Social Sciences, Nanyang Technological University, 14 Nanyang Drive, 637332, Singapore
Abstract:Many countries use centralized exit exams as a governance devise of the school system. While abundant evidence suggests positive effects of central exams on achievement tests, previous research on university-bound students shows no effects on subsequent earnings. We suggest that labor-market effects may be more imminent for students leaving school directly for the labor market and, on rigid labor markets, for unemployment. Exploiting variation in exit-exam systems across German states, we find that central exams are indeed associated with higher earnings for students from the school type directly bound for the labor market, as well as with lower unemployment.
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