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The Impact of Firm-Influenced Vocational Education on Labor Market and Demographic Outcomes

Author

Listed:
  • Mehic, Adrian

    (Research Institute of Industrial Economics (IFN))

  • Mosaddegh, Arian

    (Confederation of Swedish Enterprise)

Abstract

This paper examines the impact of a Swedish policy allowing manufacturing firms to influence the curricula of local educational institutions. Our analysis shows that the program has contributed to a significant reduction in youth unemployment, as well as an increase in marriage rates and male fertility rates at the municipality level. We further show that these positive labor market outcomes are due to improved quality and relevance of vocational education, rather than an increase in the number of graduates. However, using data covering the universe of Swedish firms, we find that manufacturing firms in neighboring municipalities saw declines in productivity, suggesting some negative spillover effects of the program.

Suggested Citation

  • Mehic, Adrian & Mosaddegh, Arian, 2025. "The Impact of Firm-Influenced Vocational Education on Labor Market and Demographic Outcomes," Working Paper Series 1524, Research Institute of Industrial Economics, revised 14 Apr 2025.
    • Handle: RePEc:hhs:iuiwop:1524
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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