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How Large Are Human Capital Externalities? Evidence from Compulsory Schooling Laws (2000)
| Venue: | IN NBER MACRO ANNUAL |
| Citations: | 284 - 7 self |
BibTeX
@INPROCEEDINGS{Acemoglu00howlarge,
author = {Daron Acemoglu and Joshua Angrist},
title = { How Large Are Human Capital Externalities? Evidence from Compulsory Schooling Laws },
booktitle = {IN NBER MACRO ANNUAL},
year = {2000},
publisher = {}
}
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Abstract
Many economists and policy makers believe that education creates positive externalities. Indeed, average schooling in U.S. states is highly correlated with state wage levels, even after controlling for the direct e¤ect of schooling on individual wages. We use variation in child labor laws and compulsory attendance laws over time and across states to investigate whether this relationship is causal. Our results show private returns to education that are around 7 percent, and external returns to education that are in the neighbourhood of 1-2 percent and not signi…cantly di¤erent from zero.
