@TechReport{iza:izadps:dp18859, author={Patrinos, Harry Anthony and Rivera-Olvera, Angelica}, title={Education and Earnings in Europe}, year={2026}, month={Aug}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={18859}, url={https://www.iza.org/publications/dp18859}, abstract={Schooling increases earnings but getting causal information on the impact of schooling requires generating evidence from policy changes. In this paper, we estimate causal effects of additional education on earnings using new compulsory schooling law data across 16 European countries. We use recent and comparable microdata and analyze the impact of reforms on schooling and earnings. Results show that a year of education substantially increases earnings, especially for those with tertiary education.}, keywords={returns to education;compulsory schooling reforms;instrumental variables;causal inference;human capital;earnings;Europe}, }