KTH/CESIS Working Paper Series in Economics and Institutions of Innovation
Returns to Higher Education - a regional perspective
() and Lina Bjerke
Abstract: The returns to education have been thoroughly investigated
and Sweden has shown to have a relatively low return compared to other
countries in Europe. Nevertheless, few studies have combined the regional
perspective with returns to education. Hence, the purpose of the paper is
to analyze regional differences in their returns to higher education within
natural science, engineering and medicine. We assume that individuals
maximize expected utility; they will try to attain the highest expected
return to education as possible. The regional sum of employment
possibilities as well as unemployment shares may differ between regions.
Therefore, it is plausible to believe that the regional return to education
varies between locations which accounted for in the empirical part of the
paper. The result shows that there are clear differences between regional
classifications concerning returns to higher education. Central urban
regions, except the three largest cities and ten largest universities have
the highest return to education. These regions may need to compensate the
individuals with a higher return. The three largest cities in Sweden have a
relatively low return but have other amenities that attract individuals.
Keywords: returns to higher education; regional attractiveness; Sweden; Mincer equation; (follow links to similar papers)
JEL-Codes: H52; I21; I22; J61; R11; (follow links to similar papers)
30 pages, March 25, 2009
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