KTH/CESIS Working Paper Series in Economics and Institutions of Innovation
Regional Variation of Returns to Education
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.
Keywords: Returns to education; regional attributes; fixed-effects model; (follow links to similar papers)
JEL-Codes: H52; I21; I22; J61; R11; (follow links to similar papers)
24 pages, March 15, 2013
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