Joensen, Juanna Schrøter, and Helena Skyt Nielsen. 2009. “Is there a Causal Effect of High School Math on Labor Market Outcomes?” Journal of Human Resources 44(1): 171–198.
In this paper, we exploit a high school pilot scheme to identify the causal effect of advanced high school math on labor market outcomes. The pilot scheme reduced the costs of choosing advanced math because it allowed for a more flexible combination of math with other courses. We find clear evidence of a causal relationship between math and earnings for students who are induced to choose math after being exposed to the pilot scheme. The effect partly stems from the fact that these students end up with a higher education.
Juanna Schrøter Joensen is an assistant professor of economics at the Stockholm School of Economics. Helena Skyt Nielsen is a professor of economics and management University of Aarhus. The authors gratefully acknowledge financial support from the Danish Research Agency. They appreciate useful comments from Joshua Angrist, Nabanita Datta Gupta, Marianne Simonsen, Lars Skipper, Michael Svarer, Christopher Taber, as well as from discussants and participants at the DGPE, CEPR/IFAU/Uppsala University, CEPR/EENEE/University of Padova, and “Do Schools Matter?” Aarhus School of Business workshops, the SMYE 2006 and ESPE 2006 conferences. The authors also would like to thank seminar participants at the University of Texas, the University of Aarhus, and Umeå University for comments on earlier drafts. The usual disclaimer applies. The data used in this article can be obtained beginning March 2010 through to February 2013 from Helena Skyt Nielsen, School of Economics and Management, University of Aarhus, Universitetsparken, Building 1322, DK-8000 Aarhus C, hnielsen@econ.au.dk. Data security policy means that access can be obtained from Aarhus only.