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on Education |
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Issue of 2026–01–19
fourteen papers chosen by João Carlos Correia Leitão, Universidade da Beira Interior |
| By: | Akira SASAHARA; Jongkwan LEE |
| Abstract: | This study examines the effects of the increased influx of immigrants triggered by the 1990 Reform to Japan’s Immigration Act on high school students’ career choices—specifically, whether they pursue higher education or enter the workforce after graduation. We employ the instrumental variable approach using a shift-share instrument based on historical settlement patterns. The results suggest that the influx of immigrants led more high school students to seek employment outside their home prefectures and to pursue higher education. These findings indicate that immigration can drive adjustments in human capital formation. |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:26002 |
| By: | Beuermann, Diether; Pariguana, Marco |
| Abstract: | Choosing a school is one of the most important decisions parents make with regards to their children's human capital, yet they often face restricted choice sets. We study parental preferences over peer quality and school effectiveness in the centralized education market of Barbados, where admissions are based on a one-shot exam and parents face a binding cap on the number of schools to which they can apply. Exploiting a policy reform that further tightened this cap, we show that parents responded by omitting the most selective schools from their applications, underscoring how market design shapes application behavior. We then estimate parental preferences for school effectiveness measured by impacts on test scores and adult wages as well as peer quality. Preference estimates under the assumption of truth-telling indicate that parents do not value effectiveness after controlling for peer quality. In contrast, preference estimates under the assumption of market stability, which allows for strategic behavior, show that parents place substantial weight on both effectiveness and peer quality. This divergence arises because the most selective schools are also the most effective, forcing parents to trade off effectiveness against admission probabilities. |
| JEL: | I21 I24 I28 J24 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:idb:brikps:14455 |
| By: | Friederike Hertweck (RWI - Leibniz Institute for Economic Research); Robbie Maris (University College London); Mirco Tonin (Free University of Bozen-Bolzano, FBK-IRVAPP, IZA, CESifo and Dondena Centre); Michael Vlassopoulos (University of Southampton, IFS, and IZA) |
| Abstract: | This paper examines university application patterns in the UK, focusing on the joint decision of selecting both an institution and a subject. Using administrative data from the Universities and Colleges Admissions Service (UCAS) covering almost all undergraduate applications between 2008 and 2021, we document three key facts: (i) students generally choose subject before university: they apply on average to around 1.6 subject areas across 4.6 institutions, and roughly half apply to a single field across multiple universities; (ii) there are significant gender gaps in application and offer rates that reflect field composition; (iii) high-socioeconomic status students submit more applications, apply less to local institutions, and obtain more offers, but these differences shrink sharply once we control for attainment and the selectivity of the programmes that students apply to. An expert survey suggests that several of these patterns run against conventional wisdom. |
| Keywords: | Higher Education, Application patterns, UCAS data, Gender, Socioeconomic Status. |
| JEL: | I20 I23 M38 |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:bzn:wpaper:bemps117 |
| By: | Patrinos, Harry Anthony; Rivera-Olvera, Angelica |
| Abstract: | This paper estimates the returns to education in Arkansas-one of the last states to extend compulsory schooling-using ACS 2023 data and the 1987 Compulsory Schooling Law (CSL) reform as an instrument. OLS estimates imply returns of 9.5-10.4 percent per year of schooling. The CSL reform increased schooling among compliers by 0.67-0.73 years and yields IV returns of 10.4-11.7 percent, exceeding OLS estimates. The results indicate that those compelled to remain in school benefited most, consistent with global evidence on higher causal returns for disadvantaged students. |
| Keywords: | Returns to education, Human capital, Wage differentials, Earnings function, Arkansas, Instrumental Variables, Compulsory Schooling |
| JEL: | I26 J24 C26 J31 I21 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1703 |
| By: | Rocco Macchiavello; Josepa Miquel-Florensa; Nicolas de Roux; Eric Verhoogen; Mario Bernasconi; Patrick W. Farrell |
| Abstract: | Do the returns to quality upgrading pass through supply chains to primary producers? We explore this question in the context of Colombia’s coffee sector, in which market outcomes depend on interactions between farmers, exporters (which operate mills), and international buyers, and contracts are for the most part not legally enforceable. We formalize the hypothesis that quality upgrading is subject to a key hold-up problem: producing high-quality beans requires long-term investments by farmers, but there is no guarantee that an exporter will pay a quality premium when the beans arrive at its mills. An international buyer with sufficient demand for high-quality coffee can solve this problem by imposing a vertical restraint on the exporter, requiring the exporter to pay a quality premium to farmers. Combining internal records from two exporters, comprehensive administrative data, and the staggered rollout of a buyer-driven quality-upgrading program, we find empirical support for the key theoretical predictions, both the lack of pass-through of quality premia under normal circumstances and the possibility of a buyer-driven solution through a vertical restraint. Calibration of the model suggests that one-third to two-thirds of the (substantial) gains from the program accrue to farmers, with the vertical restraint playing a critical role. The results are consistent with the hypotheses that quality upgrading can provide a path to higher incomes for farmers, but also that it is unlikely to be viable under standard market conditions in the sector. |
| JEL: | F61 L23 O12 Q12 Q13 |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34610 |
| By: | Amin, Mohammad; Islam, Asif Mohammed; Padhi, Debasmita |
| Abstract: | The business practices of unregistered or informal enterprises can significantly affect their performance and the overall productivity of the sector. However, very little is known about the prevalence of business practices and the sorts of factors that influence their adoption among informal enterprises. This is especially the case in the context of fragile economies. The present paper attempts to fill this gap in the literature by analyzing the adoption of business practices among informal enterprises in the Central African Republic, which serves as a unique context – high informality, low education attainment, and recurrent shocks including conflict and the AIDS epidemic. While several factors correlated with the decision to adopt business practices are uncovered, the focus is on the education level of the business owner or manager. A conservative estimate suggests that relative to no education or up to primary education, secondary or higher education increases the likelihood of adopting one or more of the nine business practices considered by about 10 percentage points. The number of business practices adopted increases by 0.66 (against a mean value of 1.7). The paper shows that the positive impact of education is most likely causal using entropy balancing, inverse probability weighting, the Oster test for selection on observables, and the impact of the AIDS epidemic in the latter half of the 1990s on school enrollment as an instrument for the education level of current business owners. The analysis also finds significant heterogeneities in the relationship between education and business practices. Belonging to a business association and a business owner’s past experience in the industry may compensate for a lack of formal education, while the use of electricity, manufacturing versus services activity, and location in Bangui city versus Berberati complement and magnify the positive effect of education. The paper discusses several avenues for future research. |
| Date: | 2026–01–07 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:11280 |
| By: | Laura Chioda; Paul Gertler; David Contreras-Loya; Dana R. Carney |
| Abstract: | We study the medium and long term impacts of Skills for Effective Entrepreneurship Development (SEED), a 3-week entrepreneurship training program for secondary school students in Uganda. The mini-MBA, modeled after business school curricula, was implemented as a randomized field experiment with a nationally representative sample of 4, 402 youth. After four years, the training improved both hard and soft skills. SEED graduates became more effective negotiators and communicators and exhibited improved self-efficacy, stability, plasticity, and stress management. In the medium run, treated youth were more likely to start enterprises and more successful in ensuring their survival, thereby gaining greater entrepreneurial experience. Their ventures were also of higher quality: more likely to be formal, have employees, be in collaboration with other entrepreneurs, and use effective business management practices. With 52% of the sample still enrolled in post-secondary education, we find suggestive evidence that businesses led by the treatment groups performed better. After nine years, business ownership converged between treatment and control groups as control ownership rates doubled. However, SEED graduates maintained their edge in terms of business quality and operated firms with 20% higher revenues and 16% higher profits, without corresponding increases in capital or labor inputs, consistent with higher total factor productivity. Entrepreneurial success was achieved through the adoption of better business practices and experimentation, with soft skills related to entrepreneurial mindset playing a complementary role. SEED generated high returns on investment: the present discounted values of SEED-induced business and total earnings equal 20 and 27 times program costs, respectively. |
| JEL: | C93 I20 J23 J24 M13 M53 O15 |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34637 |
| By: | Geven, Koen Martijn; Tahir, Ayesha; Fasih, Tazeen; Qureshi, Javaeria; Hasan, Amer; Fazili, Sheena; Malik, Rabea; Macdonald, Kevin Alan David |
| Abstract: | Text and voice messages have emerged as a low-cost and popular tool for nudging recipients to change behavior. This paper presents findings from a randomized controlled trial designed to evaluate the impact of an information campaign using text and voice messages implemented in Punjab, Pakistan during the COVID-19-induced school closures. This campaign sought to increase study time and provide academic support while schools were closed and to encourage reenrollment when they opened, to reduce the number of dropouts. The campaign targeted girls enrolled in grades 5 to 7. Messages were sent out by a government institution, and the campaign lasted from October 2020 until November 2021, when schools had permanently re-opened. Households were randomized across three treatment groups and a control group that did not receive any messages. The first treatment group received gender-specific messages that explicitly referenced daughters in their households, and the second treatment group received gender-neutral messages. A third group was cross randomized across the first two treatment arms and received academic support messages (practice math problems and solutions). The results show that the messages increased reenrollment by 6.0 percentage points approximately three months after the intervention finished. Gender neutral messages (+8.9 percentage points) showed larger effect size on enrolment than gender-specific messages (+ 4.3 percentage points), although the difference is not statistically significant. The message program also increased learning outcomes by 0.2 standard deviation for Urdu and 0.2 standard deviation for math. The paper finds a small positive effect on the intensive margin of remote learning and an (equivalent) small negative effect on the intensive margin of outside tutoring. In line with similar studies on pandemic remediation efforts, the paper finds no effect of the academic support intervention on learnin g. The findings suggest that increased school enrollment played a role in supporting the observed increase in learning outcomes. |
| Date: | 2026–01–08 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:11286 |
| By: | Gao, Yujuan; Ma, Yue; Mullally, Conner; Rozelle, Scott |
| Abstract: | This study examines spillover effects of targeted educational interventions through a field experiment in 130 rural Chinese boarding schools, comparing computer-assisted learning (CAL) and traditional workbooks. Results reveal significant negative spillovers of workbook interventions on nontarget students’ performance, particularly affecting those closely connected to targeted students. Effects intensify with increased exposure and peer interaction. The key mechanism appears motivational: Observing peers receiving supplementary workbook resources in class reduces students’ confidence in the value of their academic efforts for future careers. CAL interventions, conducted outside classrooms, show no such spillovers, highlighting the importance of considering unintended consequences in competitive, resource-limited environments. |
| Keywords: | Institutional and Behavioral Economics |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360711 |
| By: | Agossadou, M. Arsene J.; Valizadeha, Pourya; Nayga Jr., Rodolfo M. |
| Abstract: | To mitigate the adverse effects of COVID-19 on school-aged students, the federal government implemented a nationwide Universal Free School Meal (UFSM) program from March 2020 to June 2022 by temporarily waiving the Community Eligibility Program (CEP) participation requirement. This study assesses the impact of states’ decisions not to extend the UFSM program beyond the expiration of the federal waiver in June 2022 on households’ expenditure patterns, diet quality, and food insecurity outcomes. Crucially, we incorporate exposure to the CEP in our analysis. Using between-state variation in UFSM status post-waiver expiration, along with within-state variation in CEP participation, we employ a difference-in-differences identification strategy. Preliminary results suggest that households in states that did not extend the program spent more on groceries, although this effect is not statistically significant. However, we find that UFSM exposure significantly influences households’ food security outcomes. Our findings underscore the importance of accounting for CEP exposure when evaluating the impact of UFSM. |
| Keywords: | Food Security and Poverty |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360889 |
| By: | Chingri, Subhrasil; Mondal, Debasis; Prettner, Klaus |
| Abstract: | Can human capital accumulation mitigate the adverse effects of automation on the global labor share? To answer this question, we build two theoretical models-first an automation augmented growth model with exogenous human capital to illustrate the general effects of education in the context of automation; and then an automation augmented endogenous human capital accumulation framework in which individuals decide how much of their time they devote to education. We show that while automation puts downward pressure on the labor share, this downward pressure is reduced by human capital investment. Quantitatively, however, the effect of human capital accumulation in limiting the decrease in the labor share is rather small given actual data on the change in the use of industrial robots and in the years of schooling between 1990 and 2024. Achieving a full stabilization of the labor share requires unrealistically high and sustained investments in education. Our findings underscore the importance of education as a policy lever in the age of automation but they also clarify that education policies alone are insufficient given the challenges ahead. |
| Keywords: | Human capital; Automation; Labor Share; Economic Growth; Neoclassical Growth Model |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:wiw:wus005:80178895 |
| By: | Álvarez, Inmaculada C.; Barbero, Javier; Orea, Luis; Rodríguez-Pose, Andrés |
| Abstract: | Most studies of institutional quality and regional growth assume uniform effects across territories. However, this may mask crucial regional heterogeneity, with direct policy implications. We use a latent class framework applied to 230 EU regions over 2009-2017 to identify institution-driven regional parameter groups, and to examine both average effects and catching-up effects associated with changes in the institutional environment. We demonstrate that institutional quality generates highly variable returns to investment in physical capital and innovation. Nordic and Central European regions show highest returns to physical capital and R&D investment, whereas less-developed regions benefit most from education spending. Crucially, we find that improving government quality not only raises average returns but also promotes territorial cohesion. By contrast, regional autonomy shows limited impact on returns. Our findings challenge the one-size-fits-all approach to cohesion policy and indicate that cohesion policy should explicitly promote institutional improvements in addition to capital deployment. |
| Keywords: | institutional quality; European funds; investment; regional development |
| JEL: | E61 H54 R11 |
| Date: | 2025–12–24 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:130747 |
| By: | Aggarwal, Karan |
| Abstract: | Educational programs that aim to improve decision making and financial understanding are often designed around voluntary participation. The underlying assumption is that students who are interested, motivated, or capable will naturally choose to take part, allowing programs to identify talent and generate meaningful engagement. However, large scale evaluations of educational and financial literacy initiatives frequently report modest or uneven impact even when curriculum quality and institutional intent are strong. This raises a prior and less examined question: whether participation rules themselves influence who enters these programs and whose ability becomes visible. This paper examines how voluntary and mandatory participation structures shape selection, competition, and observed outcomes in school based decision making programs. The analysis draws on direct involvement in two contrasting initiatives conducted in an Indian secondary school between 2023 and 2025. The first was an eligibility based mandatory financial literacy program implemented through quizzes and structured group discussions. The second was a voluntary skill based competition that relied entirely on opt in participation. Rather than evaluating curriculum content or long term learning outcomes, the paper focuses on participation funnels, competition density, and patterns of performance that emerged under different institutional designs. Across both cases, participation appeared to impose non academic costs that varied significantly across students. These included fear of public underperformance, social exposure, and reputational risk. In the voluntary setting, students with low perceived cost of participation were more likely to opt in, while several capable students chose not to participate despite demonstrating skill in informal settings. As a result, competition was uneven and observed performance reflected the characteristics of those willing to enter rather than the underlying distribution of ability. In contrast, mandatory participation removed the initial decision to opt in and shifted attention toward performance once the activity began. Although not all participants were equally engaged, competition was deeper, outcomes were less predictable, and several strong performers emerged from students who had not previously been identified as high achievers. The comparison suggests that voluntary participation can unintentionally select for visibility rather than ability, while mandatory participation within a defined group can reduce self selection bias and allow latent capability to surface. This does not imply that compulsory participation is universally preferable or that motivation is irrelevant. Instead, it highlights how assumptions about rational self selection can fail in real educational contexts where social dynamics and perceived costs shape behavior. |
| Date: | 2026–01–08 |
| URL: | https://d.repec.org/n?u=RePEc:osf:edarxi:qmnfb_v1 |
| By: | Subhrasil Chingri (Indian Institute of Technology Delhi); Debasis Mondal (Indian Institute of Technology Delhi); Klaus Prettner (Department of Economics, Vienna University of Economics and Business) |
| Abstract: | Can human capital accumulation mitigate the adverse effects of automation on the global labor share? To answer this question, we build two theoretical models-first an automation augmented growth model with exogenous human capital to illustrate the general effects of education in the context of automation; and then an automation augmented endogenous human capital accumulation framework in which individuals decide how much of their time they devote to education. We show that while automation puts downward pressure on the labor share, this downward pressure is reduced by human capital investment. Quantitatively, however, the effect of human capital accumulation in limiting the decrease in the labor share is rather small given actual data on the change in the use of industrial robots and in the years of schooling between 1990 and 2024. Achieving a full stabilization of the labor share requires unrealistically high and sustained investments in education. Our findings underscore the importance of education as a policy lever in the age of automation but they also clarify that education policies alone are insufficient given the challenges ahead. |
| Keywords: | Human Capital, Automation, Labor Share, Economic Growth, Neoclassical Growth Model |
| JEL: | J24 O33 O41 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:wiw:wiwwuw:wuwp392 |