Education reforms and adult skills: Evidence from Estonia |
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| Institution: | 1. Overseas Development Institute, 203 Blackfriars Rd, London SE1 8NJ, UK;2. European Bank for Reconstruction and Development, One Exchange Square, London EC2A 2JN, UK;1. American Institutes for Research/CALDER, 3876 Bridge Way N, Suite 201, Seattle, WA 98103, United States;2. Center for Education Data and Research, University of Washington, 3876 Bridge Way N, Suite 201, Seattle, WA 98103, United States;3. Faculty of Education, Charles University, Magdalény Rettigové 4, Prague 116 39, Czech Republic;4. Department of Statistical Modelling, Institute of Computer Science of the Czech Academy of Sciences, Pod Vodárenskou vě?í 2, Prague 182 07, Czech Republic;1. University of Mannheim, Department of Economics, Office 326, L7, 3-5, Mannheim, 68161, Germany;2. University of Essex, Department of Economics, Wivenhoe Park, Colchester, CO4 3SQ, United Kingdom;1. School of Public Affairs, American University;2. School of Public Affairs and IZA, Arizona State University;3. School of Public Affairs, NBER, and IZA, American University |
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| Abstract: | This paper studies the impact of education reforms in Estonia in the 1990s on adult skills using the OECD PIAAC surveys. Estonia implemented extensive education reforms in the early 1990s throughout Estonian-speaking schools while Russian-speaking schools were exposed to less comprehensive reforms, which were implemented later. A large minority of Estonia’s population at the time was enrolled in Russian-speaking schools providing a unique opportunity to measure the impact of education reforms on literacy, numeracy and problem-solving skills among adults by comparing improvements in PIAAC performance among Estonian and Russian speakers. Difference-in-difference estimation suggests that the reforms led to an adult skill dividend of around 15 to 30 percent of a standard deviation. This translates to a wage (productivity) premium of around 5 to 12 percent. |
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