Working Paper Series,
Stockholm University, Swedish Institute for Social Research

Abstract: This study is the first to explore the earnings effects of credits attained in adult education at upper secondary level (AE) in Sweden. It is also investigated whether individuals with and without AE prior to enrolment in higher studies differ in their achievements at university and/or in their subsequent earnings. The analyses are based on register data of the cohort born in 1970 of which more than one third at some point has been registered in AE. In the preferred specification, credits equal to one year of AE are found to increase annual wage earnings by 4.1 per cent for males and 3.6 per cent for females. The results are mainly driven by course credits with an element of specific knowledge such as health related subjects and computer science, while more general subjects such as Mathematics, Swedish or English are linked with zero returns. Concerning higher education, the results indicate a lower payoff for AE individuals if higher studies are limited to less than two years. There is also evidence of a lower probability of completing four years of higher studies, in particular among females.

Keywords: Adult education; wage earnings

JEL-codes: H52; J68

41 pages, May 23, 2007

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