Education as opportunity? The causal effect of education on labor market outcomes in Jordan

Abstract

ABSTRACT This paper studies the impact of the 1988/1989 educational reform in Jordan which extended mandatory schooling from nine to ten years and restructured secondary schooling. Despite weakness in the Jordanian labor market, our estimates suggest that an additional year of required schooling in the late 1980s was sufficient to improve labor force participation, employment, and wages. These effects were initially largest for women, while males with more education were also slightly more likely to be self-employed, work longer hours, and earn higher wages. We show that the extensive margin gains we observe for women persist over the life cycle, while intensive margin gains materialize only later in life. In contrast, the impacts for men strengthen over the life-cycle. These patterns are consistent with a persistent influence of traditional gender norms in Jordanian society influencing labor market decision making.