2025/04/02 by Harry Krashinsky, Philip DeCicca · 1 voice
Social Sciences · Economics, Econometrics and Finance · #School Choice and Performance #Intergenerational and Educational Inequality Studies #Labor market dynamics and wage inequality
paper · doi:10.1177/00197939251328975
openalex publication_date 2025/04/02 · openalex created_date 2025/10/10 · openalex updated_date 2026/05/21
Although early instrumental variable studies documented a significantly positive monetary return to education, more recent studies have found less evidence to support this conclusion. The authors provide a new perspective on these recent studies by demonstrating that additional compulsory schooling increases both education and subsequent earnings, but only in states where there exist relatively strong effects of these laws on schooling choices. Pooling all states in the analysis masks the robust effects of education in states with greater effects of compulsory schooling laws on educational attainment. Consistent with other studies, findings suggest that state-level effects of compulsory schooling may be a function of outside labor market opportunities.