Zero Returns to Compulsory Schooling in Germany: Evidence and Interpretation

Jörn-Steffen Pischke; Till von Wachter

doi:10.1162/rest.90.3.592

Zero Returns to Compulsory Schooling in Germany: Evidence and Interpretation

Jörn-Steffen Pischke^1,2,3,4,5; Till von Wachter

¹ National Bureau of Economic Research · ² IZA - Institute of Labor Economics · ³ Centre for Economic Policy Research · ⁴ Laser Scan Engineering (United Kingdom) · ⁵ London School of Economics and Political Science

The Review of Economics and Statistics 2008 open access

We estimate the impact of compulsory schooling on earnings using changes in compulsory schooling laws in West Germany after World War II. Most estimates in the literature indicate returns in the range of 10 to 15. While our research design is very similar to studies for various other countries, we find a zero return. We find no evidence that this is due to labor market institutions or the apprenticeship training system in Germany. The result might be due to the fact that the basic skills most relevant for the labor market are learned earlier in Germany than in other countries.

DOI: 10.1162/rest.90.3.592
Volume: 90 (3)
Pages: 592-598
Language: en
Export: BibTeX
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