Education reforms and adult skills

Periodical
Economics of Education Review
Volume
82
Year
2021
Access date
March 23, 2023
Relates to study/studies
PIAAC Cycle 1

Education reforms and adult skills

Evidence from Estonia

Abstract

This paper studies the impact of education reforms in Estonia in the 1990s on adult skills using the OECD PIAAC surveys. Estonia implemented extensive education reforms in the early 1990s throughout Estonian-speaking schools while Russian-speaking schools were exposed to less comprehensive reforms, which were implemented later. A large minority of Estonia's population at the time was enrolled in Russian-speaking schools providing a unique opportunity to measure the impact of education reforms on literacy, numeracy and problemsolving skills among adults by comparing improvements in PIAAC performance among Estonian and Russian speakers. Difference-in-difference estimation suggests that the reforms led to an adult skill dividend of around 15 to 30 percent of a standard deviation. This translates to a wage (productivity) premium of around 5 to 12 percent.