Studies of the effects of school entry age on short-run and long-run outcomes generally fail to capture the parameter of policy interest and/or are inconsistent because the instrument they use violates monotonicity, required for identification of a local average treatment effect. Our instrument addresses both problems and shows no effect of entry age on the educational attainment of children born in the fourth quarter who delay enrollment only because they are constrained by the law. We provide suggestive evidence that a waiver policy allowing some children to enter before the legally permissible age increases average educational attainment.

Partly in response to increased testing and accountability, states and districts have been raising the minimum school entry age, but existing studies show mixed results regarding the effects of entry age. These studies may be severely biased because they violate the monotonicity assumption needed for LATE. We propose an instrument not subject to this bias and show no effect on the educational attainment of children born in the fourth quarter of moving from a December 31 to an earlier cutoff. We then estimate a structural model of optimal entry age that reconciles the different IV estimates including ours. We find that one standard instrument is badly biased but that the other diverges from ours because it estimates a different LATE. We also find that an early entry age cutoff that is applied loosely (as in the 1950s) is beneficial but one that is strictly enforced is not.

More than one-third of all public high school students, majority being boys and blacks, dropout of school each year. This has put the question of how to spend educational resources in a cost-e¤ective way prominent on the research agenda. In this paper, we study the e¤ect of a large scale and low cost negative incentive policy, the No Pass No Drive (NPND) law, on education outcomes.Since the late 1980s, several U.S. states have introduced these laws that set minimum academic requirements for teenagers to obtain driving licenses. Using data from the American Community Survey (ACS) and Monitoring the Future (MTF), we exploit variation across state, time, and cohort to show that NPND laws led to a 6.4 percentage point increase in the probability of graduating from high school among black males. Further, we show that NPND laws were e¤ective in reducing truancy and increased time allocated to school-work at the expense of leisure and work.

Partly in response to increased testing and accountability, states and districts have been raising the minimum school entry age, but existing studies show mixed results regarding the effects of entry age. These studies may be severely biased because they violate the monotonicity assumption needed for LATE. We propose an instrument not subject to this bias and show no effect on the educational attainment of children born in the fourth quarter of moving from a December 31 to an earlier cutoff. We then estimate a structural model of optimal entry age that reconciles the different IV estimates including ours. We find that one standard instrument is badly biased but that the other diverges from ours because it estimates a different LATE. We also find that an early entry age cutoff that is applied loosely (as in the 1950s) is beneficial but one that is strictly enforced is not.

We evaluate how financial education provided to college students influenced their financial knowledge and planning in a quasi-experimental setting where we control for student motivation to enroll in the course. Using a difference-in-difference strategy, we show that financial education led to an increase in financial knowledge and planning. Specifically, we find that financial education improved students’ financial knowledge score by 11%, and financial planning score by 16%. No statistically significant effects are detected for student levels of financial prudence, discipline, or outcomes related to credit card usage.