The effects of adult literacy on earnings and employment

This paper provides evidence of the effects of adult literacy on individuals’ income and employability in Brazil based on information obtained from the monthly employment survey (PME). The OLS results indicate that after controlling for observable characteristics, there is a 21.25% increase in wages for individuals who become literate; however, there is no significant impact on employability. Moreover, the findings show an 8.1% increase in the probability of being employed in the formal sector. We also explore the longitudinal structure of the dataset to control for unobservable fixed characteristics of individuals. The fixed-effects estimators show smaller effects compared to the OLS estimators. We find that literacy has a 4.4% effect on wages and a 4.3% impact on the probability of being formally employed. The effects are significantly different from zero.     

Educational gaps in medical care and health behavior: Evidence from US Natality data

The US Natality files provide information on medical procedures and health related behavior during pregnancy and childbirth. The data set represents nearly the universe of mothers who give birth in the US, providing the most complete coverage possible of medical care and health behavior among a specific patient population. We document gaps in outcomes by education of the mother and the changes in these educational gaps during 1989-2002.     

The quality vs. the quantity of schooling: What drives economic growth?

This paper challenges Hanushek and Woessmann's (2008) contention that the quality and not the quantity of schooling determines a nation's rate of economic growth. I first show that their statistical analysis is flawed. I then show that when a nation's average test scores and average schooling attainment are included in a national income model, both measures explain income differences, but schooling attainment has greater statistical significance. The high correlation between a nation's average schooling attainment, cumulative investment in schooling, and average tests scores indicates that average schooling attainment implicitly measures the quality as well as the quantity of schooling.     

Economic returns to education: What We Know, What We Don’t Know, and Where We Are Going—Some brief pointers

The estimation of the economic return to education has perhaps been one of the predominant areas of analysis in applied economics for over 50 years. In this short note we consider some of the recent directions taken by the literature, and also some of the blockages faced by both science and policymakers in pushing forward some key issues. This serves by way of introduction to a set of papers for a special issue of the Economics of Education Review.     

Does school time matter?—On the impact of compulsory education age on school dropout

A straightforward way to prevent students from leaving education without a higher secondary diploma is increasing the compulsory education age. The idea is that, by staying longer in school, more students eventually obtain a higher secondary diploma. This paper examines the impact of a one-year increase in compulsory school-age on dropping out of secondary education by a difference-in-differences analysis. For this, we exploit a recent compulsory education policy reform in the Netherlands. After controlling for confounding factors and observable covariates, we find that the one year increase in compulsory school-age reduces dropout by 2.5 percentage points. The effect, however, is entirely situated in the group non-liable to the policy reform. We observe that native Dutch vocational students, mostly without retention in grade, but also without a higher secondary diploma at hand, more often left school in the immediate period before the policy reform. Given the economic revival at that time, this may reflect anticipation of labor market opportunities.     

The impact of education on health knowledge

The theory on the demand for health suggests that schooling causes health because schooling increases the efficiency of health production. Alternatively, the allocative efficiency hypothesis argues that schooling alters the input mix chosen to produce health. This suggests that the more educated have more knowledge about the health production function and they have more health knowledge. This paper uses data from the 1997 and 2002 waves of the NLSY97 to conduct an investigation of the allocative efficiency hypothesis by analyzing whether education improves health knowledge. The survey design allows us to observe the increase in health knowledge of young adults after their level of schooling is increased by differential and plausibly exogenous amounts. Using nine different questions measuring health knowledge, we find weak evidence that an increase in education generates an improvement in health knowledge for those who ultimately attend college. For those with high school as the terminal degree, no relationship is found between education and health knowledge. These results imply that the allocative efficiency hypothesis may not be the primary reason for why schooling impacts health outcomes.     

The effects of quarter of birth on academic outcomes at the elementary school level

This paper uses public schools data to examine the effects of age on student academic achievement in light of recent trends to delay children's entry into kindergarten. To avoid problems of endogeneity, students’ quarters of birth is employed as an instrument for age at entry. In particular, the effects of students’ quarters of birth on math and reading standardized test scores and grade retention at the elementary school level are estimated. Evidence of benefits to being among the oldest in one's age-grade cohort is found. Interestingly, over time, the youngest students begin to perform approximately on par with the oldest students, creating a u-shaped pattern to the data.