Long-Term Effects of School Size on Students' Outcomes

We estimate the effect of school size on students' long-term outcomes such as high school completion, being out of the labor market, and earnings at the age of 30. We use rich register data on the entire population of Danish children attending grade 9 in the period 1986-2004. This allows us to compare the results of different fixed effect and instrumental variables estimators. We use the natural population variation in the residential catchment areas and school openings and closures to instrument for actual school size. We find a robust positive but numerically fairly small relationship between school size and alternative measures of long-term success in the educational system and the labor market. The positive impact of school size seems mainly to be driven by boys, students from families with a low educational level and students attending schools in urban areas

An economic analysis of identity and career choice

Standard economic models which focus on pecuniary payoffs cannot explain why there are highly able individuals who choose careers with low pecuniary returns. Therefore, financial incentives are unlikely to be effective in influencing career choices of these individuals. Based on Akerlof and Kranton (2000), we consider a model of career choice and identity where individuals derive non-pecuniary identity payoffs. Using factor analysis on a range of attitude questions, we find two factors related to identity (career orientation and social orientation), which are important for educational choices. The implication is that policymakers and institutions of higher education need to focus on identity related issues rather than just improved financial incentives if they aim at attracting the high ability youth to occupations with excess demand for labor

The Length of Maternity Leave and Family Health

We study the relationship between the length of maternity leave and the physical and psychological health of the family. Using a reform of the parental leave scheme in Denmark that increased the number of weeks of leave with full benefit compensation, we estimate the effect of the length of maternity leave on a range of health indicators including the number of hospital admissions for both mother and child and the probability of the mother receiving antidepressants. The reform led to an increase in average post-birth maternity leave of 32 days. We find limited evidence that the increase in the length of maternity leave matters for child or maternal health outcomes and thus we complement the existing evidence on maternity leave expansions that tends to find limited effects on children's later developmental, educational, and labor market outcomes. Our results suggest that any beneficial effects of increasing the length of maternity leave are greater for low-resource families

Timing of College Enrollment and Family Formation Decisions

The level of progression of an individual's educational or labor market career is a potentially important factor for family formation decisions. We address this issue by considering the effects of a particular college admission system on family formation. We show that the admission system affects mainly the timing of college enrollment and not the college-going decision. As such, we consider a specific type of career interruption and its consequences for relationship formation and fertility decisions. Specifically, we employ a regression discontinuity design based on the college admission system to estimate the effect of being above the admission requirement in the year of application on later family formation decisions. We find that the admission system has substantial effects on the timing of family formation and, specifically, that the timing of college enrollment is an important determinant hereof. This suggests that career interruptions such as delays in the educational system can have large effects on family decision-making

The Short-Term Effects of School Consolidation on Student Achievement: Evidence of Disruption?

We exploit variation stemming from school consolidations in Denmark from 2010-2011 to analyze the impact on student achievement as measured by test scores. For each student we observe enrollment and test scores one year prior to school consolidation and up to four years after. We find that school consolidation has adverse effects on achievement in the short run and that these effects are most pronounced for students exposed to school closings. Furthermore, students initially enrolled in small schools experience the most detrimental effects. The effects appear to weaken over time, suggesting that part of the effect is due to disruption

The Short-Term Effects of School Consolidation on Student Achievement: Evidence of Disruption?

We exploit variation stemming from school consolidations in Denmark from 2010- 2011 to analyze the impact on student achievement as measured by test scores. For each student we observe enrollment and test scores one year prior to school consolidation and up to four years after. We find that school consolidation has adverse effects on achievement in the short run and that these effects are most pronounced for students exposed to school closings. Furthermore, students initially enrolled in small schools experience the most detrimental effects. The effects appear to weaken over time, suggesting that part of the effect is due to disruption

A Farewell to Critical Junctures: Sorting Out Long-Run Causality of Income and Democracy

We consider the empirical relevance of two opposing hypotheses on the causality between income and democracy: The Democratic Transition claims that rising incomes cause a transition to democracy, whereas the Critical Junctures hypothesis denies this causal relation. Our empirical strategy is justified by Unified Growth Theory, which hypothesizes that the present international income differences have roots in the prehistoric past. Thus, we use prehistoric measures of biogeography as instruments for modern income levels, and find a large long-run causal effect of income on the degree of democracy. This result rejects the Critical Junctures hypothesis, which is an important part of the Primacy of Institutions view

The Importance of Peer Quality for Completion of Higher Education

Using detailed Danish administrative data covering the entire population of students entering higher education in the period 1985 to 2010, we investigate the importance of a student's peers in higher education for the decision to drop out. We use high school GPA as a predetermined measure of student ability and idiosyncratic variation in peer composition across cohorts within the same education and institution. Our findings suggest that peer ability is an important determinant of students' drop out decisions as well as later labor market outcomes. Overall, we find that a one standard deviation increase in peers' high school GPA reduces the probability of dropping out by 4.6 percentage points. This number masks considerable heterogeneity by level and field of study. Allowing for a more flexible specification, we find that low quality peers have adverse effects on the probability of dropping out while high quality peers have beneficial effects. These effects are more pronounced for lower ability students