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Research report

Testing the validity of the compulsory schooling law instrument

BP2-STS

    02.03.2017

6

instrumental variable
schooling laws
schooling reforms
treatment effects
LATE
tests
English Changes in compulsory schooling laws have been proposed as an instrument for the endogenous choice of schooling. It has been argued that raising minimum schooling exogenously increases the educational attainment of a subset of pupils without directly affecting later life outcomes such as income or health. Using the method of Huber and Mellace (2015) and data from the Survey of Health, Ageing and Retirement in Europe, we jointly test random instrument assignment, weak monotonicity of education in the instrument, and the instrument exclusion restriction. The satisfaction of these restrictions permits identifying the local average treatment effect of education on those choosing more schooling as a reaction to the law change. Our results do not point to the invalidity of the schooling law instrument, though we acknowledge that even asymptotically, testing cannot detect all possible violations of instrument validity.
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Faculty
Faculté des sciences économiques et sociales et du management
Language
  • English
Classification
Economics
Series statement
  • Working Papers SES ; 480
License
License undefined
Identifiers
  • RERO DOC 279079
  • RERO R008606896
Persistent URL
https://folia.unifr.ch/unifr/documents/305265
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