[go: up one dir, main page]

IDEAS home Printed from https://ideas.repec.org/p/hhs/nhheco/2020_014.html
   My bibliography  Save this paper

A Second Chance? Labor Market Returns to Adult Education Using School Reforms

Author

Listed:
  • Bennett, Patrick

    (Centre for Applied Research, Norwegian School of Economics)

  • Blundell, Richard

    (University College London and IFS)

  • Salvanes, Kjell Gunnar

    (Dept. of Economics, Norwegian School of Economics and Business Administration)

Abstract
Roughly one third of a cohort drop out of high school across OECD countries, and developing effective tools to address prime-aged high school dropouts is a key policy question. We leverage high quality Norwegian register data, and for identification we exploit reforms enabling access to high school for adults above the age of 25. The paper finds that considerable increases in high school completion and beyond among women lead to higher earnings, increased employment, and decreased fertility. As male education remains unchanged by the reforms, later life education reduces the pre-existing gender earnings gap by a considerable fraction.

Suggested Citation

  • Bennett, Patrick & Blundell, Richard & Salvanes, Kjell Gunnar, 2020. "A Second Chance? Labor Market Returns to Adult Education Using School Reforms," Discussion Paper Series in Economics 14/2020, Norwegian School of Economics, Department of Economics.
  • Handle: RePEc:hhs:nhheco:2020_014
    as

    Download full text from publisher

    File URL: https://hdl.handle.net/11250/2671497
    File Function: Full text
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Pohlan, Laura, 2019. "Unemployment and social exclusion," Journal of Economic Behavior & Organization, Elsevier, vol. 164(C), pages 273-299.
    2. Richard Blundell & Monica Costa-Dias & David Goll & Costas Meghir, 2021. "Wages, Experience, and Training of Women over the Life Cycle," Journal of Labor Economics, University of Chicago Press, vol. 39(S1), pages 275-315.
    3. Thomas Cornelissen & Christian Dustmann & Anna Raute & Uta Schönberg, 2018. "Who Benefits from Universal Child Care? Estimating Marginal Returns to Early Child Care Attendance," Journal of Political Economy, University of Chicago Press, vol. 126(6), pages 2356-2409.
    4. Richard Blundell & Monica Costa Dias, 2009. "Alternative Approaches to Evaluation in Empirical Microeconomics," Journal of Human Resources, University of Wisconsin Press, vol. 44(3).
    5. Teodora Boneva & Christopher Rauh, 2017. "Socio-Economic Gaps in University Enrollment: The Role of Perceived Pecuniary and Non-Pecuniary Returns," Working Papers 2017-080, Human Capital and Economic Opportunity Working Group.
    6. Katrine V. Løken & Magne Mogstad & Matthew Wiswall, 2012. "What Linear Estimators Miss: The Effects of Family Income on Child Outcomes," American Economic Journal: Applied Economics, American Economic Association, vol. 4(2), pages 1-35, April.
    7. Itzik Fadlon & Torben Heien Nielsen, 2019. "Family Health Behaviors," American Economic Review, American Economic Association, vol. 109(9), pages 3162-3191, September.
    8. Matias Busso & John DiNardo & Justin McCrary, 2014. "New Evidence on the Finite Sample Properties of Propensity Score Reweighting and Matching Estimators," The Review of Economics and Statistics, MIT Press, vol. 96(5), pages 885-897, December.
    9. David J. Deming & Claudia Goldin & Lawrence F. Katz, 2012. "The For-Profit Postsecondary School Sector: Nimble Critters or Agile Predators?," Journal of Economic Perspectives, American Economic Association, vol. 26(1), pages 139-164, Winter.
    10. Schwerdt, Guido & Messer, Dolores & Woessmann, Ludger & Wolter, Stefan C., 2012. "The impact of an adult education voucher program: Evidence from a randomized field experiment," Journal of Public Economics, Elsevier, vol. 96(7-8), pages 569-583.
    11. Henrik Kleven & Camille Landais & Jakob Egholt Søgaard, 2019. "Children and Gender Inequality: Evidence from Denmark," American Economic Journal: Applied Economics, American Economic Association, vol. 11(4), pages 181-209, October.
    12. Francine D. Blau & Lawrence M. Kahn, 2017. "The Gender Wage Gap: Extent, Trends, and Explanations," Journal of Economic Literature, American Economic Association, vol. 55(3), pages 789-865, September.
    13. James Albrecht & Gerard van den Berg & Susan Vroman, 2009. "The Aggregate Labor Market Effects of the Swedish Knowledge Lift Program," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 12(1), pages 129-146, January.
    14. Giovanni Mastrobuoni & Paolo Pinotti, 2015. "Legal Status and the Criminal Activity of Immigrants," American Economic Journal: Applied Economics, American Economic Association, vol. 7(2), pages 175-206, April.
    15. James J. Heckman & Paul A. LaFontaine, 2006. "Bias-Corrected Estimates of GED Returns," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 661-700, July.
    16. Christopher Jepsen & Peter Mueser & Kenneth Troske, 2016. "Labor Market Returns to the GED Using Regression Discontinuity Analysis," Journal of Political Economy, University of Chicago Press, vol. 124(3), pages 621-649.
    17. Edward Vytlacil & James J. Heckman, 2001. "Policy-Relevant Treatment Effects," American Economic Review, American Economic Association, vol. 91(2), pages 107-111, May.
    18. Goldin, Claudia, 2006. "The Quiet Revolution That Transformed Women’s Employment, Education, and Family," Scholarly Articles 2943933, Harvard University Department of Economics.
    19. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863, Elsevier.
    20. Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2005. "Why the Apple Doesn't Fall Far: Understanding Intergenerational Transmission of Human Capital," American Economic Review, American Economic Association, vol. 95(1), pages 437-449, March.
    21. Black, Sandra E. & Devereux, Paul J., 2011. "Recent Developments in Intergenerational Mobility," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 16, pages 1487-1541, Elsevier.
    22. Henrik Kleven & Camille Landais & Johanna Posch & Andreas Steinhauer & Josef Zweimüller, 2019. "Child Penalties across Countries: Evidence and Explanations," AEA Papers and Proceedings, American Economic Association, vol. 109, pages 122-126, May.
    23. John H. Tyler & Richard J. Murnane & John B. Willett, 2000. "Estimating the Labor Market Signaling Value of the GED," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(2), pages 431-468.
    24. Manudeep Bhuller & Magne Mogstad & Kjell G. Salvanes, 2017. "Life-Cycle Earnings, Education Premiums, and Internal Rates of Return," Journal of Labor Economics, University of Chicago Press, vol. 35(4), pages 993-1030.
    25. Alberto Abadie, 2005. "Semiparametric Difference-in-Differences Estimators," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(1), pages 1-19.
    26. Blundell, Richard & Joyce, Robert & Norris Keiller, Agnes & Ziliak, James P., 2018. "Income inequality and the labour market in Britain and the US," Journal of Public Economics, Elsevier, vol. 162(C), pages 48-62.
    27. Albæk, Karsten & Asplund, Rita & Barth, Erling & Lindahl, Lena & Strom, Marte & Vanhala, Pekka, 2019. "Better Late Than Never? How Late Completion Affects the Early Careers of Dropouts," IZA Discussion Papers 12560, Institute of Labor Economics (IZA).
    28. Matthew Wiswall & Basit Zafar, 2015. "Determinants of College Major Choice: Identification using an Information Experiment," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 82(2), pages 791-824.
    29. Stenberg, Anders & Westerlund, Olle, 2008. "Does comprehensive education work for the long-term unemployed," Labour Economics, Elsevier, vol. 15(1), pages 54-67, February.
    30. Marianne Bertrand & Magne Mogstad & Jack Mountjoy, 2021. "Improving Educational Pathways to Social Mobility: Evidence from Norway’s Reform 94," Journal of Labor Economics, University of Chicago Press, vol. 39(4), pages 965-1010.
    31. Blanden, Jo & Buscha, Franz & Sturgis, Patrick & Urwin, Peter, 2012. "Measuring the earnings returns to lifelong learning in the UK," Economics of Education Review, Elsevier, vol. 31(4), pages 501-514.
    32. Acemoglu, Daron & Autor, David, 2011. "Skills, Tasks and Technologies: Implications for Employment and Earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 12, pages 1043-1171, Elsevier.
    33. Gary S. Becker, 1975. "Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education, Second Edition," NBER Books, National Bureau of Economic Research, Inc, number beck75-1.
    34. Damon Clark & Paco Martorell, 2014. "The Signaling Value of a High School Diploma," Journal of Political Economy, University of Chicago Press, vol. 122(2), pages 282-318.
    35. Alberto Abadie & Guido W. Imbens, 2008. "On the Failure of the Bootstrap for Matching Estimators," Econometrica, Econometric Society, vol. 76(6), pages 1537-1557, November.
    36. Elizabeth U. Cascio & Ayushi Narayan, 2022. "Who Needs a Fracking Education? The Educational Response to Low-Skill-Biased Technological Change," ILR Review, Cornell University, ILR School, vol. 75(1), pages 56-89, January.
    37. Christian N. Brinch & Magne Mogstad & Matthew Wiswall, 2017. "Beyond LATE with a Discrete Instrument," Journal of Political Economy, University of Chicago Press, vol. 125(4), pages 985-1039.
    38. Nikolay Angelov & Per Johansson & Erica Lindahl, 2016. "Parenthood and the Gender Gap in Pay," Journal of Labor Economics, University of Chicago Press, vol. 34(3), pages 545-579.
    39. Bütikofer, Aline & Dalla-Zuanna, Antonio & Salvanes, Kjell G., 2018. "Breaking the Links: Natural Resource Booms and Intergenerational Mobility," Discussion Paper Series in Economics 19/2018, Norwegian School of Economics, Department of Economics.
    40. Ann Huff Stevens & Michal Kurlaender & Michel Grosz, 2019. "Career Technical Education and Labor Market Outcomes: Evidence from California Community Colleges," Journal of Human Resources, University of Wisconsin Press, vol. 54(4), pages 986-1036.
    41. Claudia Goldin, 2006. "The Quiet Revolution That Transformed Women's Employment, Education, and Family," American Economic Review, American Economic Association, vol. 96(2), pages 1-21, May.
    42. O. Ashenfelter & D. Card (ed.), 1999. "Handbook of Labor Economics," Handbook of Labor Economics, Elsevier, edition 1, volume 3, number 3.
    43. Charles F. Manski, 1993. "Adolescent Econometricians: How Do Youth Infer the Returns to Schooling?," NBER Chapters, in: Studies of Supply and Demand in Higher Education, pages 43-60, National Bureau of Economic Research, Inc.
    44. Magne Mogstad & Andres Santos & Alexander Torgovitsky, 2018. "Using Instrumental Variables for Inference About Policy Relevant Treatment Parameters," Econometrica, Econometric Society, vol. 86(5), pages 1589-1619, September.
    45. Olga Malkova, 2018. "Can Maternity Benefits Have Long-Term Effects on Childbearing? Evidence from Soviet Russia," The Review of Economics and Statistics, MIT Press, vol. 100(4), pages 691-703, October.
    46. Nekoei, Arash & Seim, David, 2018. "How do Inheritances Shape Wealth Inequality? Theory and Evidence from Sweden," CEPR Discussion Papers 13199, C.E.P.R. Discussion Papers.
    47. Bütikofer, Aline & Jensen, Sissel & Salvanes, Kjell G., 2018. "The role of parenthood on the gender gap among top earners," European Economic Review, Elsevier, vol. 109(C), pages 103-123.
    48. Michel Grosz, 2020. "The Returns to a Large Community College Program: Evidence from Admissions Lotteries," American Economic Journal: Economic Policy, American Economic Association, vol. 12(1), pages 226-253, February.
    49. Andrew Goodman-Bacon & Jamein P. Cunningham, 2019. "Changes in Family Structure and Welfare Participation Since the 1960s: The Role of Legal Services," NBER Working Papers 26238, National Bureau of Economic Research, Inc.
    50. Bjorklund, Anders & Moffitt, Robert, 1987. "The Estimation of Wage Gains and Welfare Gains in Self-selection," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 42-49, February.
    51. Robert Jensen, 2010. "The (Perceived) Returns to Education and the Demand for Schooling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(2), pages 515-548.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pedro Carneiro & Kjell Salvanes & Barton Willage & Alexander Willén, 2023. "Childhood Shocks Across Ages and Human Capital Formation," Working Papers 2023-018, Human Capital and Economic Opportunity Working Group.
    2. Patrick Bennett, 2021. "The Work-To-School Transition: Job Displacement and Skill Upgrading among Young High School Dropouts," CESifo Working Paper Series 9417, CESifo.
    3. Patrick Bennett & Kai Liu & Kjell Salvanes, 2023. "The Decline of Routine Tasks, Education Investments, and Intergenerational Mobility," Upjohn Working Papers 23-382, W.E. Upjohn Institute for Employment Research.
    4. Tilley, J. Lucas, 2023. "School resources, peer inputs, and student outcomes in adult education," Economics of Education Review, Elsevier, vol. 96(C).
    5. Karlsson, Linn, 2021. "Never too late? Returning to university after completing secondary education as adults," Umeå Economic Studies 1002, Umeå University, Department of Economics.
    6. Kauhanen, Antti & Virtanen, Hanna, 2021. "Heterogeneity in Labor Market Returns to Adult Education," ETLA Working Papers 91, The Research Institute of the Finnish Economy.
    7. Carneiro, Pedro & Salvanes, Kjell G. & Willage, Barton & Willén, Alexander, 2022. "The Timing of Parental Job Displacement, Child Development and Family Adjustment," IZA Discussion Papers 15630, Institute of Labor Economics (IZA).
    8. Kirill Borusyak & Xavier Jaravel & Jann Spiess, 2021. "Revisiting Event Study Designs: Robust and Efficient Estimation," Papers 2108.12419, arXiv.org, revised Jan 2024.
    9. Richard Blundell, 2022. "Inequality, Redistribution and Wage Progression," Economica, London School of Economics and Political Science, vol. 89(S1), pages 160-177, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Patrick Bennett, 2021. "The Work-To-School Transition: Job Displacement and Skill Upgrading among Young High School Dropouts," CESifo Working Paper Series 9417, CESifo.
    2. Petrongolo, Barbara & Ronchi, Maddalena, 2020. "Gender gaps and the structure of local labor markets," Labour Economics, Elsevier, vol. 64(C).
    3. Bartalotti, Otávio & Kédagni, Désiré & Possebom, Vitor, 2023. "Identifying marginal treatment effects in the presence of sample selection," Journal of Econometrics, Elsevier, vol. 234(2), pages 565-584.
    4. Gaurab Aryal & Manudeep Bhuller & Fabian Lange, 2022. "Signaling and Employer Learning with Instruments," American Economic Review, American Economic Association, vol. 112(5), pages 1669-1702, May.
    5. Delfino, Alexia, 2021. "Breaking Gender Barriers: Experimental Evidence on Men in Pink-Collar Jobs," IZA Discussion Papers 14083, Institute of Labor Economics (IZA).
    6. Josep Amer-Mestre and Agnès Charpin, 2022. "Gender Differences in Early Occupational Choices: Evidence from Medical Specialty Selection," Economics Working Papers EUI ECO 2022/01, European University Institute.
    7. Barigozzi, Francesca & Cremer, Helmuth & Roeder, Kerstin, 2020. "Having it all, for all: Child-care subsidies and income distribution reconciled," Journal of Economic Behavior & Organization, Elsevier, vol. 176(C), pages 188-211.
    8. Bautista, M. A. & González, F. & Martínez, L. R. & Muñoz, P. & Prem, M., 2020. "Chile’s Missing Students: Dictatorship, Higher Education and Social Mobility," Documentos de Trabajo 18163, Universidad del Rosario.
    9. Berniell, Inés & Berniell, Lucila & de la Mata, Dolores & Edo, María & Marchionni, Mariana, 2023. "Motherhood and flexible jobs: Evidence from Latin American countries," World Development, Elsevier, vol. 167(C).
    10. Matthias Westphal & Daniel A Kamhöfer & Hendrik Schmitz, 2022. "Marginal College Wage Premiums Under Selection Into Employment," The Economic Journal, Royal Economic Society, vol. 132(646), pages 2231-2272.
    11. Estefanía Galván & Cecilia García-Peñalosa, 2021. "Interactions amongst gender norms: Evidence from US couples," Documentos de Trabajo (working papers) 21-15, Instituto de Economía - IECON.
    12. Bautista, María Angélica & González, Felipe & Martinez, Luis R. & Muñoz, Pablo & Prem, Mounu, 2020. "Dictatorship, Higher Education, and Social Mobility," SocArXiv 6st9r, Center for Open Science.
    13. Roman Bobilev & Anne Boschini & Jesper Roine, 2020. "Women in the Top of the Income Distribution: What Can We Learn From LIS-Data?," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 6(1), pages 63-107, March.
    14. Barbara Boelmann & Anna Raute & Uta Schönberg, 2021. "Wind of Change? Cultural Determinants of Maternal Labor Supply," ECONtribute Discussion Papers Series 090, University of Bonn and University of Cologne, Germany.
    15. Inés Berniell & Lucila Berniell & Dolores de la Mata & María Edo & Yarine Fawaz & Matilde P. Machado & Mariana Marchionni, 2020. "Motherhood and the Allocation of Talent," CEDLAS, Working Papers 0270, CEDLAS, Universidad Nacional de La Plata.
    16. Matthias Krapf & Anja Roth & Michaela Slotwinski, 2020. "The Effect of Childcare on Parental Earnings Trajectories," CESifo Working Paper Series 8764, CESifo.
    17. Cortes, Patricia & Pan, Jessica, 2020. "Children and the Remaining Gender Gaps in the Labor Market," IZA Discussion Papers 13759, Institute of Labor Economics (IZA).
    18. Bennett, Patrick & Ravetti, Chiara & Wong, Po Yin, 2021. "Losing in a boom: Long-term consequences of a local economic shock for female labour market outcomes," Labour Economics, Elsevier, vol. 73(C).
    19. Albanesi, Stefania & Olivetti, Claudia & Petrongolo, Barbara, 2022. "Families, labor markets and policy," LSE Research Online Documents on Economics 118038, London School of Economics and Political Science, LSE Library.
    20. Alessandra Casarico & Salvatore Lattanzio, 2023. "Behind the child penalty: understanding what contributes to the labour market costs of motherhood," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(3), pages 1489-1511, July.

    More about this item

    Keywords

    Adult Education; Returns to Education; Fertility; Gender inequality;
    All these keywords.

    JEL classification:

    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:nhheco:2020_014. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Karen Reed-Larsen (email available below). General contact details of provider: https://edirc.repec.org/data/sonhhno.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.