Education legislations that equalize: a study of compulsory schooling law reforms in post-WWII United States

Abstract

Abstract Compulsory schooling laws are commonly believed to be effective measures in ensuring individuals benefit from education. However, their implications for racial equality are less-apparent. Exploiting timing and geographic variation in legislation reforms among Southern U.S. states, this study evaluates the differential impact of minimum school-leaving age requirements on short- and long-term labor market outcomes between Black and White men. Results show that each additional year of compulsory schooling produces about 7.3–8.2% increase in adulthood weekly income. While there exists a substantial gap in returns to education between Black and White men at early career stages, this gap is reduced by 37 percentage points at mid-late career. Findings imply that mandating compulsory school attendance motivates both Black and White men to stay in school longer, and thus reducing racial gaps in returns to education.