We evaluate the effects of the school system on mathematical, verbal, and logical reasoning skills using data from the Finnish comprehensive school reform that abolished the two-track school system. We use a difference-in-differences approach that exploits the gradual implementation across the country. Cognitive skills are measured using test scores from the Finnish Army Basic Skills Test. The reform had small positive effects on verbal test scores but no effect on the mean performance in the arithmetic or logical reasoning tests. However, the reform significantly improved the scores of the students whose parents had less than a high school education.

Government employment programs for low-skilled workers typically emphasize rapid placement of participants into jobs, of which many are temporary-help jobs. Using data from Detroit’s welfare-to-work program and the Chernozhukov-Hansen instrumental variables quantile regression method, we find that neither direct-hire nor temporary-help job placements significantly affect the lower tail of the earnings distribution. In the upper tail, direct-hire placements yield sizable earnings increases for over half of participants, while temporary-help placements yield significant earnings losses at higher quantiles. Our results cast doubt on the efficacy of employment programs’ exclusive focus on rapid job placement and their widespread reliance on temporary-help placements.

We study the impact of skilled immigrants on the employment structures of US firms using matched employer-employee data. Unlike most previous work, we use the firm as the lens of analysis to account for greater heterogeneity and the fact that many skilled immigrant admissions are driven by firms themselves (e.g., the H-1B visa). OLS and IV specifications show rising overall employment of skilled workers with increased skilled immigrant employment by the firm. Employment expansion is greater for young natives than for their older counterparts. The departure rates for older workers relative to younger workers appear highest for those in STEM occupations.