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

Abstract: When studying different types of returns to education, educational reforms are commonly used in the economics literature as a source of exogenous variation in education. The Swedish compulsory school reform is one example; the reform extended compulsory education throughout the country, in different municipalities at different points in time. Such variation across cohorts and regions can be used in a differences-in-differences framework, in order to estimate causal effects of education. This paper provides a guide to researchers who consider using the Swedish reform in an empirical analysis: I present a description and background of the reform, provide some baseline results, a reliability analysis of the reform coding, a discussion of whether the reform is a valid instrument, and comment on the interpretation of IV estimates of returns to schooling.

Keywords: educational reform; instrumental variables

JEL-codes: I28

51 pages, July 9, 2007

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