Does education improve labour market outcomes?
(2014) NEKP01 20141Department of Economics
- Abstract (Swedish)
- This paper estimates the causal relationship between years of schooling
and unemployment. The results are derived from a high quality dataset
containing observations on 13,896 twins. A control for twin pair specific heterogeneity is introduced by exploiting the twin dimension through the fixed effects estimator. Although the OLS estimator reports a strong negative correlation between education and unemployment, the relationship vanishes once a control for unobserved ability is introduced. These results are consistent with previous studies about the effect of education on unemployment in a Swedish context. Altogether, the evidence would suggest that the negative correlation between schooling and unemployment is a result of more able... (More) - This paper estimates the causal relationship between years of schooling
and unemployment. The results are derived from a high quality dataset
containing observations on 13,896 twins. A control for twin pair specific heterogeneity is introduced by exploiting the twin dimension through the fixed effects estimator. Although the OLS estimator reports a strong negative correlation between education and unemployment, the relationship vanishes once a control for unobserved ability is introduced. These results are consistent with previous studies about the effect of education on unemployment in a Swedish context. Altogether, the evidence would suggest that the negative correlation between schooling and unemployment is a result of more able individuals self selecting into higher education. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/4457678
- author
- Von Buxhoeveden, Mathias LU
- supervisor
- organization
- course
- NEKP01 20141
- year
- 2014
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- twins, education, unemployment, returns to schooling
- language
- English
- id
- 4457678
- date added to LUP
- 2014-06-26 15:00:42
- date last changed
- 2014-06-26 15:00:42
@misc{4457678, abstract = {{This paper estimates the causal relationship between years of schooling and unemployment. The results are derived from a high quality dataset containing observations on 13,896 twins. A control for twin pair specific heterogeneity is introduced by exploiting the twin dimension through the fixed effects estimator. Although the OLS estimator reports a strong negative correlation between education and unemployment, the relationship vanishes once a control for unobserved ability is introduced. These results are consistent with previous studies about the effect of education on unemployment in a Swedish context. Altogether, the evidence would suggest that the negative correlation between schooling and unemployment is a result of more able individuals self selecting into higher education.}}, author = {{Von Buxhoeveden, Mathias}}, language = {{eng}}, note = {{Student Paper}}, title = {{Does education improve labour market outcomes?}}, year = {{2014}}, }