2015
DOI: 10.1002/jae.2461
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Reanalyzing Zero Returns to Education in Germany

Abstract: SUMMARY Pischke and von Wachter (Review of Economics and Statistics 2008; 90(3):592-598) find zero earnings returns to compulsory schooling in the basic school track in Germany. We reanalyze their study using a different dataset.In an extension, we use additional instruments which allow estimation of heterogeneous effects for different groups of compliers. We can confirm the previous result and also find zero returns for other compliers in higher track schools. Moreover, we do not find a causal effect of schoo… Show more

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Cited by 33 publications
(42 citation statements)
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“…Second, keeping the educational level constant, the role of instructional timing and age is analyzed. In addition, this study extends the literature on Germany, especially given the puzzle that Kamhöfer and Schmitz (2015) find no effects while for all other countries investigated there exist positive cognitive returns to education. Furthermore, the rich datasets contain extensive tests of cognitive ability allowing for different cognitive dimensions to be distinguished.…”
Section: Theoretical Background and Previous Literaturesupporting
confidence: 68%
See 1 more Smart Citation
“…Second, keeping the educational level constant, the role of instructional timing and age is analyzed. In addition, this study extends the literature on Germany, especially given the puzzle that Kamhöfer and Schmitz (2015) find no effects while for all other countries investigated there exist positive cognitive returns to education. Furthermore, the rich datasets contain extensive tests of cognitive ability allowing for different cognitive dimensions to be distinguished.…”
Section: Theoretical Background and Previous Literaturesupporting
confidence: 68%
“…Hence, with the exception of the study on Germany by Kamhöfer and Schmitz (2015), all studies find clearly positive effects of an additional year of schooling on cognitive abilities. Most of these analyses use a change in overall school duration by one year to identify positive effects on cognition.…”
Section: Theoretical Background and Previous Literaturementioning
confidence: 76%
“…Affected mothers have a 1.5 percentage points higher probability to work and wages increase by 0.5 percent. 25 These small effects are in line with the zero-returns to compulsory schooling in Pischke and von Wachter (2008) and Kamhöfer and Schmitz (2016). The authors argue that basic track students already learned labour market-relevant skills earlier.…”
Section: Soepmentioning
confidence: 85%
“…The reform was implemented at different points in time across federal states (see Appendix Table B.1). It is exploited in other studies analysing the impact of increases in schooling on labour market outcomes (Pischke and von Wachter, 2008;Kamhöfer and Schmitz, 2016), health behaviours and health status of the affected generation (Kemptner, Jürges, and Reinhold, 2011), civic engagement (Siedler, 2010), and fertility (Cygan-Rehm and Maeder, 2013). Piopiunik (2014) uses the reform to study the effects on children's school track.…”
Section: The Compulsory Schooling Reform In West Germanymentioning
confidence: 99%
“…This did not only result from the WWII but also from the "anti-intellectualism" (Picht, 1964, p.66) in the Third Reich. (ii) An increase in the number of academic secondary schools at the same time (as analyzed in Kamhöfer andSchmitz, 2015, andJürges et al, 2011, for instance) qualified a larger share of school graduates to enroll into higher education (Bartz, 2007). (iii) A change in production technologies led to an increase in firm's demand for high-skilled workers -especially, given the low level of educational participation (Weisser, 2005).…”
Section: College Availabilitymentioning
confidence: 99%