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Lecture

ECON 426 Lecture Notes - Compulsory Education, Lochner V. New York, Literature Review


Department
Economics (Arts)
Course Code
ECON 426
Professor
Sonya Laszlo

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Daniel S. Goh (McGill ID: 260305028)
ECON 426, Article Summary
9 November 2011
SUMMARY
Title: The compelling effects of compulsory schooling: evidence from Canada
Authors: Philip Oreopoulos
Source: Canadian Journal of Economics
Date: February 2006
Keywords: Human capital, compulsory schooling age benefits
Main hypotheses/questions:
What are the effects and benefits of compulsory schooling in Canada?
To provide an alternative framework to evaluate the merits of compulsory
schooling
Main results:
An additional year of compulsory schooling will have an increase in annual
income by 9-15%, and possess better skills, such as bilingualism and better work
ethic. These changes are nearly uniform across cohorts and geographic regions
The opportunity cost of forgoing additional education by dropping out is very
high because of these benefits
Literature review:
References previous studies that have delved into individual and social gains of
school attendance such as those by Angrist and Krueger (1991) and Acemoglu
and Angrist (2002), especially in that of income
Other citations mention the effect of other outcomes, such as health (Lleras-
Muney (2002)), civic activity (Milligan, Moretti, and Oreopoulos (2003)), and
crime (Lochner and Moretti (2002))
Frontier: Policy making in youth human capital
Data:
Dominion Bureau of Statistics (now Statistics Canada) for data on compulsory
school requirements and Canadian census data
More detailed hypotheses/facts/results/comments:
Allowing for exemptions for minimum school leaving age decreases grade
attainment
Effects on income and grade attainment occur very soon after increases in school
leaving age
Effects of returns to increasing compulsory schooling increases over time
In terms of socioeconomic outcomes, increases in compulsory schooling:
o Increases reports of full-time occupations and job searching
o Increases probability of working in clerical occupations
o Decreases probability of falling below Statistics Canada’s Low Income
Cut-off
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