Working Paper: NBER ID: w22855
Authors: Karen Clay; Jeff Lingwall; Melvin Stephens Jr.
Abstract: This paper uses a new dataset on state compulsory attendance, continuation school, and child labor laws with the 1940 full count Census of Population to estimate the returns to schooling for native-born white men in the 1885-1912 birth cohorts. IV estimates of returns to schooling range from 0.064 to 0.079. Quantile IV estimates show that the returns to schooling were largest for the lowest quantiles, and were generally monotonically decreasing for higher quantiles. These findings suggest that early schooling laws may have contributed to the Great Compression by increasing education levels for white men at the bottom of the distribution.
Keywords: compulsory attendance laws; educational outcomes; returns to schooling; Great Compression
JEL Codes: I26; J24; J31; N32
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Dropping southern-born men (J79) | Consistent results (C52) |
| Compulsory schooling laws (I21) | Educational attainment (I21) |
| Educational attainment (I21) | Returns to schooling (I26) |
| Compulsory schooling laws (I21) | Returns to schooling (I26) |
| Compulsory schooling laws (I21) | Completion rates of six to eight years of schooling (I21) |