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CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology KTH/CESIS Working Paper Series in Economics and Institutions of Innovation

No 300:
Regional Variation of Returns to Education

Mikaela Backman ()

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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