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In 1968, the Taiwanese government extended compulsory education from 6 to 9 years and opened over 150 new junior high schools at a differential rate among regions. Within each region, we exploit variations across cohorts in new junior high school openings to construct an instrument for schooling, and employ it to estimate the causal effects of mother's or father's schooling on infant birth outcomes in the years 1978–1999. Parents' schooling does cause favorable infant health outcomes. The increase in schooling associated with the reform saved almost 1 infant life in 1,000 live births. (JEL I12, I21, J12, J13, R23)
Chou et al. (Wed,) studied this question.