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This paper studies the labor market returns to quality of higher education for low-skilled students. Using a regression discontinuity design, we compare students who marginally pass and marginally fail the French high school exit exam from the first attempt. Threshold crossing leads to an improvement in the quality, but has no effect on the quantity, of higher education pursued. Specifically, students who marginally pass are more likely to enroll in STEM majors and universities with better peers. Further, marginally passing increases earnings by 13.6 percent at the age of 27 to 29. Our findings show that low-skilled students experience large gains from having the opportunity to access higher quality postsecondary education.

The gender wage gap in East Germany has narrowed by 10 percentage points in transition, but women have experienced much more severe employment difficulties than men. Using the German Socio‐Economic Panel for 1990–94, I show that on balance women have lost relative to men. Almost half the relative wage gain is due to exits from employment of the low skilled, who are disproportionately women. The female employment decline is not primarily voluntary: more than half the gender gap in the hazard rate from employment reflects a general fall in demand for low‐skilled workers. Reduced child care plays no role.

This article is concerned with the determinants of English-language fluency among immigrants and the effects of fluency on earnings. Using special survey data on a sample of over eight hundred aliens, the analysis shows the importance of certain variables not previously available, speaking fluency at migration and English reading fluency. English speaking and reading fluency both increase with duration in the United States, and the increase with duration is greater for those with more schooling and who are not Hispanic. The article shows that reading fluency is more important than speaking fluency as a determinant of earnings. Copyright 1991 by University of Chicago Press.