Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/185389 
Year of Publication: 
2018
Series/Report no.: 
CESifo Working Paper No. 7191
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
This study estimates the effect of compulsory schooling on earnings. For identification, I exploit a German reform that extended the duration of secondary schooling in the 1960s. I find that hourly wages increase by 6%-8% per additional year of schooling. This result challenges prior findings for Germany of zero returns to schooling, obtained by using the same survey data and reform. I show that the earlier estimates suffer from unconsidered institutional details. A complementary analysis using social security records confirms significant effects on earnings, but yields no effects on employment and take-up of public transfers.
JEL: 
I21
I26
J31
Document Type: 
Working Paper
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