Scandinavian Working Papers in Economics

Working Paper Series,
IFAU - Institute for Evaluation of Labour Market and Education Policy

No 2020:15: A researcher’s guide to the Swedish compulsory school reform

Helena Holmlund ()
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Helena Holmlund: IFAU - Institute for Evaluation of Labour Market and Education Policy, Postal: Institute for Evaluation of Labour Market and Education Policy, P O Box 513, SE-751 20 Uppsala, Sweden

Abstract: This paper demonstrates how a natural experiment in education can be used to estimate causal effects. The Swedish compulsory school reform extended basic education gradually across cohorts and municipalities, allowing for a difference-in-differences analysis. The paper summarizes the literature using this reform and shows that it provided individuals from low socio-economic backgrounds with better opportunities in life. Not only did they attain higher levels of education – they also earned higher earnings, were less likely to participate in crime, and more likely to run for office.

Keywords: education reform; natural experiment

JEL-codes: I24; I26; I28

43 pages, October 2, 2020

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