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Changes in the Rate of Return to Education in Sweden: 1968-1991

Author

Listed:
  • Palme, Mårten

    (Dept. of Economic Statistics, Stockholm School of Economics)

  • Wright, Robert E.

Abstract

This paper estimates and documents changes in the rate of return to education in Sweden between 1968 and 1991. Both the "quantity" (i.e.) years of schooling completed) and "quality" (i.e. education level obtained) dimensions of education are considered. These returns are calculated by estimating human capital wage equations. The data used are from the 1968, 1981 and 1991 Swedish Level of Living Surveys. There are three main conclusions. The first is that the rate of return to education declined considerably between 1968 and 1981. However, since 1981 there has been little change. The second is that the magnitude of the decline was not the same for all levels of education, with the decline being particularly pronounced for university education. The third is that the decline was not equally shared between men and women, with the decline being larger for women.

Suggested Citation

  • Palme, Mårten & Wright, Robert E., 1994. "Changes in the Rate of Return to Education in Sweden: 1968-1991," SSE/EFI Working Paper Series in Economics and Finance 6, Stockholm School of Economics.
  • Handle: RePEc:hhs:hastef:0006
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    2. Lazuka, Volha, 2019. "It’s a long walk: Lasting effects of maternity ward openings on labour market performance," Lund Papers in Economic History 187, Lund University, Department of Economic History.

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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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