This paper uses a recent and unique feature of the English educational system to identify and estimate the causal effect of education on labour
market outcomes. We exploit school leaving rules that allow for variation in legal exit dates /within/ a school year cohort according to
date of birth and thus define the extent of compulsory schooling. Individuals compelled to stay on in school for as little as three extra
months are more likely to achieve higher qualification levels and see their participation and employment probabilities significantly enhanced.
These results allow us to assess the New Labour government’s decision to set a single school leaving date in 1997 in order to induce higher
levels of examination entries. Our evidence suggests this measure was fairly cost-effective, particularly in comparison with initiatives like
the Education Maintenance Allowance.
Presented by:
Emilia Del Bono, ISER
Date & time:
March 8, 2006 1:00 pm - March 8, 2006 12:00 am
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