February 2026

IZA DP No. 18364: The Returns to Education in Arkansas: Evidence from the 1987 Compulsory Education Law

Harry Anthony Patrinos, Angelica Rivera-Olvera

This paper estimates the returns to education in Arkansas — one of the last states to extend compulsory schooling — using ACS 2023 data and the 1987 Compulsory Schooling Law (CSL) reform as an instrument. OLS estimates imply returns of 9.5–10.4 percent per year of schooling. The CSL reform increased schooling among compliers by 0.67–0.73 years and yields IV returns of 10.4–11.7 percent, exceeding OLS estimates. The results indicate that those compelled to remain in school benefited most, consistent with global evidence on higher causal returns for disadvantaged students.