IDEAS home Printed from https://ideas.repec.org/a/wly/japmet/v37y2022i1p218-223.html
   My bibliography  Save this article

Are there no wage returns to compulsory schooling in Germany? A reassessment

Author

Listed:
  • Kamila Cygan‐Rehm

Abstract

This study replicates and challenges the finding of zero wage returns to compulsory schooling in Germany by Pischke and von Wachter (Review of Economics and Statistics, 90(3), 592–598), which is unusual in the literature yet widely cited and until now uncontradicted. I document that this finding is sensitive to minor changes in sample restrictions and model specification. Further results suggest that their estimates are potentially confounded by previously unconsidered institutional details. These findings render the conclusion that compulsory schooling in Germany yields no wage returns at a minimum controversial.

Suggested Citation

  • Kamila Cygan‐Rehm, 2022. "Are there no wage returns to compulsory schooling in Germany? A reassessment," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 37(1), pages 218-223, January.
    • Handle: RePEc:wly:japmet:v:37:y:2022:i:1:p:218-223
    DOI: 10.1002/jae.2854
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/jae.2854
    Download Restriction: no
    File URL: https://libkey.io/10.1002/jae.2854?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Marc Piopiunik, 2014. "Intergenerational Transmission of Education and Mediating Channels: Evidence from a Compulsory Schooling Reform in Germany," Scandinavian Journal of Economics, Wiley Blackwell, vol. 116(3), pages 878-907, July.
    2. repec:hal:pseose:halshs-00754526 is not listed on IDEAS
    3. Melvin Stephens Jr. & Dou-Yan Yang, 2014. "Compulsory Education and the Benefits of Schooling," American Economic Review, American Economic Association, vol. 104(6), pages 1777-1792, June.
    4. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4, National Bureau of Economic Research, Inc.
    5. Daniel A. Kamhöfer & Hendrik Schmitz, 2016. "Reanalyzing Zero Returns to Education in Germany," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 31(5), pages 912-919, August.
    6. Paul J. Devereux & Robert A. Hart, 2010. "Forced to be Rich? Returns to Compulsory Schooling in Britain," Economic Journal, Royal Economic Society, vol. 120(549), pages 1345-1364, December.
    7. Jörn-Steffen Pischke, 2007. "The Impact of Length of the School Year on Student Performance and Earnings: Evidence From the German Short School Years," Economic Journal, Royal Economic Society, vol. 117(523), pages 1216-1242, October.
    8. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, January.
    9. Costas Meghir & Mårten Palme, 2005. "Educational Reform, Ability, and Family Background," American Economic Review, American Economic Association, vol. 95(1), pages 414-424, March.
    10. Daniel E. Ho & Zoe C. Ashwood & Cassandra Handan-Nader, 2019. "New Evidence on Information Disclosure through Restaurant Hygiene Grading," American Economic Journal: Economic Policy, American Economic Association, vol. 11(4), pages 404-428, November.
    11. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863, Elsevier.
    12. Philip Oreopoulos, 2006. "Estimating Average and Local Average Treatment Effects of Education when Compulsory Schooling Laws Really Matter," American Economic Review, American Economic Association, vol. 96(1), pages 152-175, March.
    13. Julien Grenet, 2013. "Is Extending Compulsory Schooling Alone Enough to Raise Earnings? Evidence from French and British Compulsory Schooling Laws," Post-Print halshs-00754526, HAL.
    14. Jörn-Steffen Pischke & Till von Wachter, 2008. "Zero Returns to Compulsory Schooling in Germany: Evidence and Interpretation," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 592-598, August.
    15. Cygan-Rehm, Kamila & Maeder, Miriam, 2013. "The effect of education on fertility: Evidence from a compulsory schooling reform," Labour Economics, Elsevier, vol. 25(C), pages 35-48.
    16. Iris Kesternich & Bettina Siflinger & James P. Smith & Joachim K. Winter, 2014. "The Effects of World War II on Economic and Health Outcomes across Europe," The Review of Economics and Statistics, MIT Press, vol. 96(1), pages 103-118, March.
    17. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    18. Kemptner, Daniel & Jürges, Hendrik & Reinhold, Steffen, 2011. "Changes in compulsory schooling and the causal effect of education on health: Evidence from Germany," Journal of Health Economics, Elsevier, vol. 30(2), pages 340-354, March.
    19. Giorgio Brunello & Margherita Fort & Guglielmo Weber, 2009. "Changes in Compulsory Schooling, Education and the Distribution of Wages in Europe," Economic Journal, Royal Economic Society, vol. 119(536), pages 516-539, March.
    20. Siddhartha Chib & Liana Jacobi, 2016. "Bayesian Fuzzy Regression Discontinuity Analysis and Returns to Compulsory Schooling," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 31(6), pages 1026-1047, September.
    21. Franziska Hampf, 2019. "The Effect of Compulsory Schooling on Skills: Evidence from a Reform in Germany," ifo Working Paper Series 313, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    22. O. Ashenfelter & D. Card (ed.), 1999. "Handbook of Labor Economics," Handbook of Labor Economics, Elsevier, edition 1, volume 3, number 3.
    23. Julien Grenet, 2013. "Is Extending Compulsory Schooling Alone Enough to Raise Earnings? Evidence from French and British Compulsory Schooling Laws," Scandinavian Journal of Economics, Wiley Blackwell, vol. 115(1), pages 176-210, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cygan-Rehm, Kamila, 2018. "Is additional schooling worthless? Revising the zero returns to compulsory schooling in Germany," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181528, Verein für Socialpolitik / German Economic Association.
    2. Stanislav Avdeev, 2020. "Zero Returns To Higher Education: Evidence From A Natural Experiment," HSE Working papers WP BRP 236/EC/2020, National Research University Higher School of Economics.
    3. de New, Sonja C. & Schurer, Stefanie & Sulzmaier, Dominique, 2021. "Gender differences in the lifecycle benefits of compulsory schooling policies," European Economic Review, Elsevier, vol. 140(C).
    4. Martin Fischer & Martin Karlsson & Therese Nilsson & Nina Schwarz, 2020. "The Long-Term Effects of Long Terms – Compulsory Schooling Reforms in Sweden," Journal of the European Economic Association, European Economic Association, vol. 18(6), pages 2776-2823.
    5. Jacek Liwiński, 2020. "The Impact of Compulsory Schooling on Hourly Wage: Evidence From the 1999 Education Reform in Poland," Evaluation Review, , vol. 44(5-6), pages 437-470, October.
    6. Hofmarcher, Thomas, 2021. "The effect of education on poverty: A European perspective," Economics of Education Review, Elsevier, vol. 83(C).
    7. Fischer, Martin & Karlsson, Martin & Nilsson, Therese & Schwarz, Nina, 2016. "The Sooner the Better? Compulsory Schooling Reforms in Sweden," IZA Discussion Papers 10430, Institute of Labor Economics (IZA).
    8. Ozturk, Ahmet & Tumen, Semih, 2018. "Education and Labor Market Consequences of Student Protests in Late 1970s and the Subsequent Military Coup in Turkey," IZA Discussion Papers 11733, Institute of Labor Economics (IZA).
    9. Franziska Hampf, 2019. "The Effect of Compulsory Schooling on Skills: Evidence from a Reform in Germany," ifo Working Paper Series 313, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    10. Albarrán, Pedro & Hidalgo-Hidalgo, Marisa & Iturbe-Ormaetxe, Iñigo, 2020. "Education and adult health: Is there a causal effect?," Social Science & Medicine, Elsevier, vol. 249(C).
    11. Daniel A. Kamhöfer & Hendrik Schmitz, 2013. "Analyzing Zero Returns to Education in Germany – Heterogeneous Eff ects and Skill Formation," Ruhr Economic Papers 0446, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    12. Tatjana Begerow & Hendrik Jürges, 2022. "Does compulsory schooling affect health? Evidence from ambulatory claims data," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 23(6), pages 953-968, August.
    13. Daniel A. Kamhöfer & Hendrik Schmitz, 2013. "Analyzing Zero Returns to Education in Germany: Heterogeneous Effects and Skill Formation," SOEPpapers on Multidisciplinary Panel Data Research 598, DIW Berlin, The German Socio-Economic Panel (SOEP).
    14. Murat G. Kirdar & Meltem Dayioglu & Ismet Koç, 2013. "Does Longer Compulsory Education Equalize Educational Attainment? Evidence From A Major Policy Reform," Working Papers 777, Economic Research Forum, revised Oct 2013.
    15. Assaad, Ragui & Aydemir, Abdurrahman B. & Dayioglu-Tayfur, Meltem & Kirdar, Murat Güray, 2023. "Wage Returns to Human Capital Resulting from an Extra Year of Primary School: Evidence from Egypt," IZA Discussion Papers 16037, Institute of Labor Economics (IZA).
    16. Mathias Huebener, 2017. "Intergenerational Effects of Education on Risky Health Behaviours and Long-Term Health," Discussion Papers of DIW Berlin 1709, DIW Berlin, German Institute for Economic Research.
    17. repec:zbw:rwirep:0446 is not listed on IDEAS
    18. Dang, Thang, 2017. "Education as Protection? The Effect of Schooling on Non-Wage Compensation in a Developing Country," MPRA Paper 79223, University Library of Munich, Germany.
    19. Gregory Clark & Christian Abildgaard Nielsen, 2024. "The Returns to Education: A Meta-study," Working Papers 0249, European Historical Economics Society (EHES).
    20. Chen, Yi & Jiang, Sheng & Zhou, Li-An, 2020. "Estimating returns to education in urban China: Evidence from a natural experiment in schooling reform," Journal of Comparative Economics, Elsevier, vol. 48(1), pages 218-233.
    21. Buscha, Franz & Dickson, Matt, 2015. "The Wage Returns to Education over the Life-Cycle: Heterogeneity and the Role of Experience," IZA Discussion Papers 9596, Institute of Labor Economics (IZA).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:japmet:v:37:y:2022:i:1:p:218-223. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.interscience.wiley.com/jpages/0883-7252/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.