Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/334440 
Year of Publication: 
2026
Series/Report no.: 
GLO Discussion Paper No. 1703
Publisher: 
Global Labor Organization (GLO), Essen
Abstract: 
This paper estimates the returns to education in Arkansas-one of the last states to extend compulsory schooling-using ACS 2023 data and the 1987 Compulsory Schooling Law (CSL) reform as an instrument. OLS estimates imply returns of 9.5-10.4 percent per year of schooling. The CSL reform increased schooling among compliers by 0.67-0.73 years and yields IV returns of 10.4-11.7 percent, exceeding OLS estimates. The results indicate that those compelled to remain in school benefited most, consistent with global evidence on higher causal returns for disadvantaged students.
Subjects: 
Returns to education
Human capital
Wage differentials
Earnings function
Arkansas
Instrumental Variables
Compulsory Schooling
JEL: 
I26
J24
C26
J31
I21
Document Type: 
Working Paper

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