Scandinavian Working Papers in Economics

Working Paper Series,
Research Institute of Industrial Economics

No 1524: The Impact of Firm-Influenced Vocational Education on Labor Market and Demographic Outcomes

Adrian Mehic () and Arian Mosaddegh
Additional contact information
Adrian Mehic: Research Institute of Industrial Economics (IFN), Postal: and Department of Economics, Lund University, Sweden
Arian Mosaddegh: Confederation of Swedish Enterprise, Postal: Stockholm, Sweden

Abstract: This paper examines the impact of a Swedish policy allowing manufacturing firms to influence the curricula of local educational institutions. Our analysis shows that the program has contributed to a significant reduction in youth unemployment, as well as an increase in marriage rates and male fertility rates at the municipality level. We further show that these positive labor market outcomes are due to improved quality and relevance of vocational education, rather than an increase in the number of graduates. However, using data covering the universe of Swedish firms, we find that manufacturing firms in neighboring municipalities saw declines in productivity, suggesting some negative spillover effects of the program.

Keywords: Youth unemployment; Vocational education; Fertility

JEL-codes: E24; I26; J12; J24

Language: English

44 pages, First version: March 4, 2025. Revised: April 14, 2025.

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