Do Dropouts Drop Out Too Soon? International Evidence From Changes in School-Leaving Laws

This paper studies high school dropout behavior by estimating the long-run consequences to leaving school early. I measure these consequences using changes in minimum school leaving ages often introduced to prevent dropping out and compare results across the United States, Canada, and the United Kingdom. Students compelled to stay in school experience substantial gains to lifetime wealth, health, and other labor market activities for all three countries, and these results hold up against a wide array of specification checks. I estimate dropping out one year later increases present value income by more than 10 times forgone earnings and more than 2 times the maximum lifetime annual wage. The one-year cost to attending high school would have to be extremely large to offset these gains under a model that views education as an investment. Other, sub-optimal, explanations for why dropouts forgo these benefits are considered.

A Professor Like Me: The Influence of Instructor Gender on College Achievement

Many wonder whether teacher gender plays an important role in higher education by influencing student achievement and subject interest. The data used in this paper helps identify average effects from male and female college students assigned to male or female teachers. In contrast to previous work at the primary and secondary school level, our focus on large first-year undergraduate classes isolates gender interaction effects due to students reacting to instructors rather than instructors reacting to students. In addition, by focusing on college, we examine the extent to which gender interactions may exist at later ages. We find that assignment to a same-sex instructor boosts relative grade performance and the likelihood of completing a course, but the magnitudes of these effects are small. A same-sex instructor increases average grade performance by at most 5 percent of its standard deviation and decreases the likelihood of dropping a course by 1.2 percentage points. The effects are similar when conditioning on initial ability (high school achievement), and ethnic background (mother tongue not English), but smaller when conditioning on mathematics and science courses. The effects of same-sex instructors on upper-year course selection are insignificant.

A Professor Like Me: Influence of Professor Gender on University Achievement

Many wonder whether teacher gender plays an important role in higher education by influencing student achievement and subject interest. The data used in this paper helps identify average effects from male and female university students assigned to male or female teachers. In contrast to previous work at the primary and secondary school level, our focus on large first-year undergraduate classes isolates gender interaction effects due to students reacting to instructors rather than instructors reacting to students. In addition, by focussing on university students, we examine the extent to which gender interactions may exist at later ages. We find that assignment to a same-sex instructor boosts relative grade performance and the likelihood of completing a course, but the magnitudes of these effects are small. A same-sex instructor increases average grade performance by at most 5 percent of its standard deviation and decreases the likelihood of dropping a course by 1.2 percentage points. The effects are similar when conditioning on initial ability (high school achievement), and ethnic background (mother tongue not English), but smaller when conditioning on mathematics and science courses. The effects of same-sex instructors on upper-year course selection are insignificant.Teacher Quality, Higher Education, Gender Role Model Effects

Generational Accounting and Immigration in the United States

In recent years, the renewed strength of immigration to the United States has sparked a debate about the economic effects of immigration. A central issue in this debate has been the fiscal impact of immigrants. Most research in this area has adopted a static, cross-section approach in assessing the net impact of immigrants on the economy's fiscal position. However, a dynamic approach is important because of the age dependency of many government tax and expenditure programs, and necessary to take the descendents of immigrants into account. This paper reconsiders the fiscal impact of immigrants over time, using the technique of generational accounting. We may summarize our results with three findings: 1. Because new immigrants represent a larger fraction of future generations than of present ones, shifting the burden onto future generations also shifts it, relatively, onto new immigrants. Thus, if the entire fiscal imbalance currently estimated for the United States is placed on future generations, then the presence of new immigrants reduces the burden borne by natives. 2. When a policy of fiscal responsibility' is followed, whether there is a fiscal gain from immigration depends on the extent to which government purchases rise with the immigrant population. 3. The impact of immigration on fiscal balance is extremely small relative to the size of the overall imbalance itself. Thus, immigration should be viewed neither as a major source of the existing imbalance, nor as a potential solution to it.

Lead Them to Water and Pay Them to Drink: An Experiment with Services and Incentives for College Achievement

High rates of attrition, delayed completion, and poor achievement are growing concerns at colleges and universities in North America. This paper reports on a randomized field experiment involving two strategies designed to improve these outcomes among first-year undergraduates at a large Canadian university. One treatment group was offered peer advising and organized study group services. Another was offered substantial merit-scholarships for solid, but not necessarily top, first year grades. A third treatment group combined both interventions. Service take-up rates were much higher for students offered both services and scholarships than for those offered services alone. Females also used services more than males. No program had an effect on grades for males. However, first-term grades were significantly higher for females in the two scholarship treatment groups. These effects faded somewhat by year's end, but remain significant for females who planned to take enough courses to qualify for a scholarship. There also appears to have been an effect on retention for females offered both scholarships and services. This effect is large enough to generate an overall increase in retention. On balance, the results suggest that a combination of services and incentives is more promising than either alone.

Does Education Improve Citizenship? Evidence from the U.S. and the U.K.

Many economists and educators of diverse political beliefs favor public support for education on the premise that a more educated electorate enhances the quality of democracy. While some earlier studies document an association between schooling and citizenship, little attempt has been made to address the possibility that unobservable characteristics of citizens underlie this relationship. This paper explores the effect of extra schooling induced through compulsory schooling laws on the likelihood of becoming politically involved in the US and the UK. We find that educational attainment is related to several measures of political interest and involvement in both countries. For voter turnout, we find a strong and robust relationship between education and voting for the US, but not for the UK. Using the information on validated voting, we find that misreporting of voter status can not explain our estimates. Our results suggest that the observed drop in voter turnout in the US from 1964 to 2000 would have been 10.4 to 12.3 percentage points greater if high school attainment had stayed at 1964 rates, holding all else constant. However, when we condition on registration, our US results approach the UK findings. This may indicate that registration rules present a barrier to low-educated citizens' participation.

Do Dropouts Drop Out Too Soon? Evidence from Changes in School-Leaving Laws

his paper investigates if decisions to drop out of high school are sub-optimal, and whether students benefit from policies, such as a minimum school leaving age, that oblige them to finish school beyond the time they choose on their own. I use changes in minimum school-leaving laws in Great Britain and Ireland, which were remarkably influential, to measure pecuniary and non-pecuniary gains from education. I find, similar to previous studies, students compelled to take an extra year of schooling experienced an average increase of 12 percent in annual earnings. I also find significant effects from education on health, leisure and labor activities, and subjective measures of well-being, which hold up against a wide array of specification checks. Comparing these estimates with intertemporal models of educational choice, the main conclusion of this paper is that it is very difficult to justify an optimal decision to drop out early without the presence of time inconsistent preferences, misguided expectations, or disutility from identifying with a social group that considers dropping out the norm. To prefer dropping out early, the one-year cost from attending school would have to exceed a dropout s maximum lifetime annual earnings by a factor of about six.social returns to education, identity, happiness, compulsory school laws

The Short- and Long-Term Career Effects of Graduating in a Recession: Hysteresis and Heterogeneity in the Market for College Graduates

The standard neo-classical model of wage setting predicts short-term effects of temporary labor market shocks on careers and low costs of recessions for both more and less advantaged workers. In contrast, a vast range of alternative career models based on frictions in the labor market suggests that labor market shocks can have persistent effects on the entire earnings profile. This paper analyzes the long-term effects of graduating in a recession on earnings, job mobility, and employer characteristics for a large sample of Canadian college graduates with different predicted earnings using matched university-employer-employee data from 1982 to 1999, and uses its results to assess the importance of alternative career models. We find that young graduates entering the labor market in a recession suffer significant initial earnings losses that eventually fade, but after 8 to 10 years. We also document substantial heterogeneity in the costs of recessions and important effects on job mobility and employer characteristics, but small effects on time worked. These adjustment patterns are neither consistent with a neo-classical spot market nor a complete scarring effect, but could be explained by a combination of time intensive search for better employers and long-term wage contracting. All results are robust to an extensive sensitivity analysis including controls for correlated business cycle shocks after labor market entry, endogenous timing of graduation, permanent cohort differences, and selective labor force participation.