Educational Reform and Labor Market Outcomes: The Case of Argentina's Ley Federal De Educación

Abstract

In the nineties Argentina implemented a large education reform (Ley Federal de Educación – LFE) that mainly implied the extension of compulsory education in two additional years. The timing in the implementation substantially varied across provinces, providing a source of identification for unraveling the causal effect of the reform. The estimations from difference-in-difference models suggest that the LFE had an overall positive although mild impact on education and labor outcomes. The impact on the income-deprived youths was small for education outcomes and null for labor outcomes.

Keywords: education, reform, labor market, wages, employment, Argentina

JEL Classification: I2, I3