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Regional Variation of Returns to Education

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  • Backman, Mikaela

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    (Jönköping International Business School, & Centre for Entrepreneurship and Spatial Economics (CEnSE))

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    Abstract

    Returns to education are mainly influenced by the characteristics of the individual. However, returns are also likely to depend on location characteristics. Thus, there are different location premiums for educational attainment. This paper analyse the regional variation of returns to education where Swedish municipal markets are divided into four categories based on size and commuting patterns. Through the obtained results, the often-assumed hypothesis of equal returns to education for all regions in a country can be rejected. Highest returns to education are found in municipalities in metropolitan functional regions and the lowest in peripheral municipalities in small functional regions.

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    Bibliographic Info

    Paper provided by Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies in its series Working Paper Series in Economics and Institutions of Innovation with number 300.

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    Length: 24 pages
    Date of creation: 15 Mar 2013
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    Handle: RePEc:hhs:cesisp:0300

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    Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden
    Phone: +46 8 790 95 63
    Web page: http://www.infra.kth.se/cesis/
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    Keywords: Returns to education; regional attributes; fixed-effects model;

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