Scandinavian Working Papers in Economics

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

No 300: Regional Variation of Returns to Education

Mikaela Backman ()
Additional contact information
Mikaela Backman: Jönköping International Business School, & Centre for Entrepreneurship and Spatial Economics (CEnSE), Postal: P. O. Box 1026, SE-551 11, Jönköping , Sweden,

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

JEL-codes: H52; I21; I22; J61; R11

24 pages, March 15, 2013

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