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Does education improve labour market outcomes?

Von Buxhoeveden, Mathias LU (2014) NEKP01 20141
Department 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:
author
Von Buxhoeveden, Mathias LU
supervisor
organization
course
NEKP01 20141
year
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}},
}