Education on the cheap: The long-run effects of a free compulsory education reform in rural china

This paper evaluates the long-run effects of a free compulsory education reform in rural China on individuals’ educational attainment, cognitive achievement and health. We exploit the cross-province variation in the roll-out of the reform and apply a difference-in-differences strategy to identify the causal effects of the reform on the outcomes. We find that the reform exposure, measured by the number of semesters that an individual is supposed to be exposed to the free compulsory education, is positively associated with individuals’ educational attainment and cognitive achievement measured by math test scores in early adulthood. The reform effects on educational attainment become greater in the longer term. Moreover, the reform effect on educational attainment is stronger for individuals with less-educated fathers.     

Declining Returns to Education in Norway? Comparing Estimates across Cohorts,Sectors and over Time

We examine the role of the Norwegian education system in explaining the moderate and stable earnings dispersion in Norway. Estimating earnings equations for 1980 and 1990, we find that returns to education have been remarkably stable in Norway, also when we compare returns to education across different sectors of the economy. Our analysis controls for self-selection into education by using an instrumental variable technique. We estimate separate education earnings profiles for different cohorts to identify the effect on wage premiums of the large changes that have taken place in the Norwegian education system. The substantially higher level of educational attainment for more recent cohorts does not, cet. par. , seem to have a negative effect on educational wage premiums for these younger cohorts.
JEL classification: J 24, J 31, I     

Evaluating universal primary education in Uganda: School fee abolition and educational outcomes

This paper analyzes the effect of lifting primary school fees on educational attainment in Uganda. After the abolishment of school fees in 1997, the enrollment rate more than doubled. Two decades later, we know little about the effect of the policy on educational attainment. With recent data on eight cohorts exposed to free education, we analyze the impact of the policy on years of completed primary school, completion of primary school, and transitioning to secondary school. We use a straightforward regression analysis with cohort dummies and household fixed effects to control for unobserved heterogeneity. We find that lifting school fees had no effect on the years of primary school achievement and the likelihood of primary school completion. We find some weak evidence that the likelihood of those who completed primary education to start secondary school increased after Universal Primary Education.     

What factors drive individual misperceptions of the returns to schooling in Tanzania? Some lessons for education policy

Evidence on educational returns and the factors that determine the demand for schooling in developing countries is extremely scarce. Building on previous studies that show individuals underestimating the returns to schooling, we use two surveys from Tanzania to estimate both the actual and perceived schooling returns and subsequently examine what factors drive individual misperceptions regarding actual returns. Using OLS and instrumental variable methods, we find that each additional year of schooling in Tanzania increases earnings, on average, by 9 to 11%. We find that on average individuals underestimate returns to schooling by 74 to 79% and three factors are associated with these misperceptions: income, asset, poverty and educational attainment. Shedding light on what factors relate to individual beliefs about educational returns can inform policy on how to structure effective interventions in order to correct individual misperceptions.     

Does the higher education expansion in the UK reduce the returns to education? A comparison of returning-from-work versus fresh out-of-school graduates

Using the Quarterly Labour Force Survey, we examine the effect of the higher education expansion following the Education Reform Act 1988 on the returns to education in the United Kingdom. Compared to previous studies, we make the distinction between fresh out-of-school students and returning-from-work students who typically have rather lower prior educational attainment but more work experience. We find that fresh university students have experienced larger declines in lower secondary-school educational attainment while the returning university students have grown significantly in shares as a result of the expansion. After accounting for the compositional changes, the Matching Difference-in-Differences results suggest that the expansion has significantly reduced the returns to education for fresh students, but not for returning students. Our findings imply that government policy to enrol increasingly academically weaker students into universities could be misleading. On the other hand, university education might continue to be an efficient pathway for some low school-achievers to obtain more education and enhance their productivity, provided they have some relevant work experience and favourable non-cognitive skills.     

Differential rewards to, and contributions of, education in urban China's segmented labor markets

Abstract. Using worker data from a 1999–2000 urban enterprise survey, we examine the effects of education on the current earnings of continuously employed urban workers, migrants and laid off but subsequently re‐employed workers. We also decompose the earnings differentials between each of these groups of workers and then assess the contribution of education to explanations of the differentials. The empirical results demonstrate that returns to education increase with marketization and competition in the workplace. We also find educational attainment to be an important explanator of the earnings differentials between institutionally differentiated groups of workers in China's urban labor markets.     

Education for all. A welfare-improving course for Africa?

In this paper, we argue that the case for universal compulsory education for sub-Saharan Africa might have been overstated. We capture the African situation through a heterogeneous-agent model, in which high costs of education relative to income and the skill premium cause the economy to stagnate in a low steady state with minimal educational attainment. We calibrate the model to available data from the sub-Saharan African countries to study education policies. We find that a tax and in-kind subsidy scheme that effectively redistributes resources from households with lower ability children to those with higher ability children outperforms enrollment-maximizing policies such as the abolition of child labor and compulsory education.     

Labour market consequences of a high school diploma

This article compares the labour market outcomes of high school dropouts to high school graduates who did not enrol into higher education, but immediately entered the labour market. Using parental educational background as an instrument on a rich administrative dataset in the Flemish Region of Belgium, we find no returns to a high school diploma on average. However, these results hide considerable heterogeneity by gender and educational track. While females and individuals in vocational education may benefit from a diploma, male graduates and students holding a general education diploma may even be worse off on the labour market than dropouts. We show that sectoral heterogeneity acts as an underlying mechanism in the returns to a high school diploma.     

SLEEPWALKING THROUGH SCHOOL: NEW EVIDENCE ON SLEEP AND ACADEMIC ACHIEVEMENT

Policymakers advocating for later school starting times argue that increased sleep duration may generate important schooling benefits. Using data from the National Longitudinal Study of Adolescent Health, this study examines the relationship between sleep duration and academic performance, while carefully controlling for difficult‐to‐measure characteristics at the family and individual levels. We find that increased sleep time is associated with improvements in classroom concentration as well as increased educational attainment. However, we also find evidence of diminishing returns to increased sleep. We estimate an “academic optimum” number of sleep hours of, on average, 8.5 hours per night. Turning to sleep quality, we find that the onset of insomnia‐like symptoms is associated with diminished contemporaneous academic concentration, but little change in long‐run educational attainment. (JEL I12)     

The Relationship Between Education and Adult Mortality in the United States

Prior research has uncovered a large and positive correlation between education and health. This paper examines whether education has a causal impact on health. I follow synthetic cohorts using successive U.S. censuses to estimate the impact of educational attainment on mortality rates. I use compulsory education laws from 1915 to 1939 as instruments for education. The results suggest that education has a causal impact on mortality, and that this effect is perhaps larger than has been previously estimated in the literature.     

The intergenerational transmission of education: Evidence from Taiwanese adoptions

This paper examines the causal effect of parental schooling on children’s schooling using a large sample of adoptees from Taiwan. Using birth-parents’ education to help control for selective placement of children with adoptive parents, we find that adoptees raised with more highly educated parents have higher educational attainment, measured by years of schooling and probability of university graduation. We also find evidence that adoptive father’s schooling is more important for sons’ and adoptive mother’s schooling is more important for daughters’ educational attainment. These results support the notion that family environment (nurture) is important in determining children’s educational outcomes, independent of genetic endowment.     

Educational Attainment and Family Background

Abstract. This paper analyses the effect of aspects of family background, such as family income and parental education, on the educational attainment of persons born from 1967 to 1972. Family income is measured at different periods of a child's life to separate long-term versus short-term effects of family income on educational choices. We find that permanent income matters to a certain degree, and that family income when the child is 0–6 years old is an important explanatory variable for educational attainment later in a child's life. We find that short-term credit constraints have only a small effect on educational attainment. Long-term factors, such as permanent family income and parental education, are much more important for educational attainment than are short-term credit constraints. Public interventions to alleviate the effects of family background should thus also be targeted at a child's early years, the shaping period for the cognitive and non-cognitive skills important later in life.     

School entry age and educational attainment in developing countries: Evidence from China's compulsory education law

We investigate the causal impact of age of enrolment on educational attainment in a developing country setting. Using China's 1986 Compulsory Education Law, which established a new nationally uniform age threshold for primary school enrolment as a natural experiment, we find that the probability of attending high school falls by 3.6 percentage points when school enrolment is postponed by one year. We provide suggestive evidence that those who start school later are not better learners, and that older students' higher labor opportunity cost plays an important role in explaining the negative impact of school entry age on educational attainment.     

Impact of Education on Household Welfare in Nigeria

Human capital development, especially higher educational attainment, attaches high premium to its expected economic benefits, in form of better welfare. This study investigates the effect of educational attainment of household head on two indicators of household welfare, namely labour market earnings and household per capita total expenditure on food and non-food items in Nigeria. The study uses the Double Hurdle (DH) model and Quantile Regression (QR) to address these objectives. The empirical results show that returns to schooling are substantially higher at the tertiary level of education compared with primary, secondary, and postgraduate levels of education in Nigeria. Furthermore, additional years of tertiary education attainment by household heads was found to increase household per capita total expenditure more than additional years of primary, secondary and postgraduate education. The implication of these findings is that the improvements in economic welfare of households in Nigerian is driven more by the attainment of tertiary education by household heads, relative to other levels of education.     

Inequality in educational attainment and expectation: evidence from the China Family Panel Studies

This article studies educational inequalities in China by measuring both educational attainment and educational expectations using the 2010 nationally representative data from the China Family Panel Study. We find that educational inequalities have increased over the past several decades, and these inequalities are mainly reflected in the widening gaps in higher education between rural and urban residents. This is true for both educational attainment and expectations. Because parental education level is another significant factor affecting both educational attainment and expectations, imminent measures are needed to stop the vicious cycle of translating existing educational inequalities into larger inequalities in later generations.     

The Effect of Education on the Timing of Marriage and First Birth in Pakistan

A rapid rise in women’s education levels, an increase in the age at marriage and an increase in the age at which they have their first child are key features of demographic transition in any country. Education is considered to be an essential component in this process because increases in educational attainment are likely to significantly affect both age at marriage and the duration between marriage and first birth - in particular increasing both the age at marriage and the time to first child. This paper uses individual level unit record data from Pakistan to examine the effect of education on the age at marriage and on the duration between marriage and first birth. We jointly estimate educational attainment, age at marriage and duration between marriage and first birth allowing for household level unobserved heterogeneity. We find that educational attainment increases the age at marriage but does not have a statistically significant effect on the duration between marriage and first birth. However, there is a threshold level of education that must be attained before educational attainment starts having an effect on the hazard of marriage.

     

Mortality risks,education and child labor

In this paper, we investigate the role of young adult mortality on child labor and educational decisions. We argue that mortality risks are a major source of risks in returns to education in developing countries. We show that, in the absence of appropriate insurance mechanisms, the level of child labor is inefficient, but it can be too high or too low. It is too high when parents are not very altruistic and anticipate positive transfers from their children in the future. Uncertain returns to education, endogenous mortality or imperfect capital markets unambiguously increase child labor. When the level of child labor is inefficiently high, we also show that a cash transfer conditional on child's schooling can always restore efficiency regarding child labor.     

Educational Attainment and the Gender Wage Gap: A Comparison of Young Men and Women in 1984 and 2007

This study pools data from two sources to investigate the role of educational attainment in determining the gender wage gap. The empirical analysis reveals that the returns to education remained largely unchanged for young men but declined significantly for young women over the period 1984–2007. We find significant evidence of a decline in the returns to a Bachelor's degree for young women as well as evidence of increasing wage inequality over time among young men and women with a Bachelor's degree. Also, in 2007, the gender wage gap between young men and women was largest for those with a Bachelor's degree. Further, our analysis suggests that young women with a college education may confront more discrimination in the labor market than young women without a college education. We conclude that promoting educational attainment among young women may be a necessary but not sufficient condition for addressing the gender wage gap.     

Ethnic externalities in education and second-generation immigrants

I analyse the role of ethnic and native human capital – defined, respectively, as the average years of schooling of ethnic groups and of natives within a specific region – and of ethnic concentrations in the educational attainment of second-generation immigrants in Germany. Compared to natives’ children, parents’ education has a small and insignificant effect on second-generation immigrants’ education. Ethnic concentrations have a negative effect, while ethnic capital is insignificant. The effect of native capital, too, is insignificant but much larger in magnitude than the effect of ethnic capital. For women, mother’s education is relatively more important. For men, ethnic concentrations constitute a stronger impediment to educational attainment than for women.     

The long-term impact of education on dietary diversity among women in Zimbabwe

Education is perceived to have a positive impact on a variety of health outcomes. However, it is unclear how causal this association is or what could account for the observed relationship, especially in low-income countries. This study examined the educational gradient in dietary diversity among young women using individual-level survey data from Zimbabwe. A parametric fuzzy regression discontinuity design was used in the empirical analysis, with school reform exposure serving as an instrumental variable for educational attainment. The results show that increased schooling improves dietary diversity among women and that this effect is large and statistically significant. An examination of the potential mechanisms by which education improves dietary diversity revealed that women with more education are more likely to engage with print media by reading newspapers or magazines, to be literate, to access prenatal care when pregnant, to be wealthier, to have fewer children, and to live in metropolitan areas. These findings suggest that expanding educational opportunities, particularly for young girls in developing countries like Zimbabwe, could be a useful policy strategy to promote healthy eating among young women and, as a result, could enhance population health and nutrition outcomes.