The Impact of Compulsory Education on Employment and Wages in a Transition Economy

In 1966, the minimum school-leaving age in Poland was increased from 14 to 15 years. This was a result of extending primary school education from seven to eight years. As the education system at post-primary levels was not changed, all education tracks were thus extended by one year. Using the regression discontinuity design method and data from the Polish Labor Force Survey (2001–2005), I find that the reform, on average, had no impact on men’s and women’s hourly wage or employment rate. However, the reform had a negative impact on the hourly wage of individuals with primary education only.