Gender differences in the lifecycle benefits of compulsory schooling policies

We estimate the lifecycle benefits of raising minimum school leaving age (MSLA) policies. Using a difference-in-differences method, we estimate the causal impact of two Australian state reforms that extended the MSLA from 14 to 15 during the 1960s. Important gender differences emerge in how the reforms affected the lifecycle capital accumulation process. While raising the MSLA improved women’s wages and wealth, the reforms improved men’s non-cognitive skills and satisfaction with life. The differential outcomes may be explained by heterogeneous impacts of the reform on educational attainment and occupational choice. The reforms increased women’s but not men’s probability to complete high school, without affecting access to tertiary education. Women were disproportionately more likely to enter professional occupations, achieved higher quality marital matches and experienced better family relationships. Raising education levels for individuals at the lower end of the education spectrum produces lifecycle benefits that exceed market-return considerations