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Do university enrollment constraints affect education and earnings?

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Abstract

In most countries the number of places at the universities is restricted. This paper estimates the effect of university enrollment constraints in 1982 on years of education and earnings in Sweden 1981-96. The effect on educational attainment is related to labor market performance, to estimate the effect of education on earnings. The variation used is driven by discrete jumps in the admission selection to university. The results show that university enrollment constraints affect educational attainment over the entire period studied. In 1996, admitted applicants in 1982 have about one quarter of a year longer education than screened out applicants. The effect of enrollment constraints changes with time. In the end of the panel, admitted applicants in 1982 are no better off than screened out applicants. The estimated return to education in Sweden is very low, both with least square and instrumental variable techniques.

Suggested Citation

  • Öckert, Björn, 2002. "Do university enrollment constraints affect education and earnings?," Working Paper Series 2002:16, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  • Handle: RePEc:hhs:ifauwp:2002_016
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    1. Broström, Göran & Palme, Mårten & Johansson, Per, 2002. "Economic incentives and gender differences in work absence behavior," Working Paper Series 2002:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    2. Carling, Kenneth & Larsson, Laura, 2002. "Does early intervention help the unemployed youth?," Working Paper Series 2002:10, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    3. Pedro Carneiro & Karsten T. Hansen & James J. Heckman, 2002. "Removing the Veil of Ignorance in Assessing the Distributional Impacts of Social Policies," NBER Working Papers 8840, National Bureau of Economic Research, Inc.
    4. Skans, Oskar Nordstrom, 2005. "Age effects in Swedish local labor markets," Economics Letters, Elsevier, vol. 86(3), pages 419-426, March.
    5. Lars Calmfors & Anders Forslund & Maria Hemström, 2002. "Does Active Labour Market Policy Work? Lessons from the Swedish Experiences," CESifo Working Paper Series 675, CESifo Group Munich.
    6. Johansson, Kerstin, 2002. "Labor market programs, the discouraged-worker effect, and labor force participation," Working Paper Series 2002:9, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    7. Johansson, Kerstin, 2002. "Labor Market Programs, the Discouraged-Worker Effect, and Labor Force Participation," Working Paper Series 2002:16, Uppsala University, Department of Economics.
    8. Johansson, Kerstin, 2002. "Do labor market programs affect labor force participation?," Working Paper Series 2002:3, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    9. Per Johansson & Mårten Palme, 2002. "Assessing the Effect of Public Policy on Worker Absenteeism," Journal of Human Resources, University of Wisconsin Press, vol. 37(2), pages 381-409.
    10. Sacklén, Hans, 2002. "An evaluation of the Swedish trainee replacement schemes," Working Paper Series 2002:7, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    11. repec:rus:hseeco:10108 is not listed on IDEAS
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    More about this item

    Keywords

    Education and earnings; admission selection; regression-discontinuity design; long panel;

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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