The Adult Education Initiative in Sweden –Second Year Effects on Wage Earnings and the Influence on Branch Mobility

This paper presents a follow up study of earlier economic evaluations of the Adult Education Initiative (AEI) in Sweden. The AEI was foremost directed to those unemployed and involved comprehensive education at compulsory or upper secondary levels. The AEI is compared with the vocational part of Labor Market Training (LMT). Outcome variables are annual wage earnings in 1999 and in 2000 as well as mobility between branches of employment. The estimated effects on wage earnings of the AEI relative to LMT are negative for both the samples enrolled in 1997 and in 1998. Selection model estimates indicate positive selection on unobservables into the AEI, which is larger for those enrolled in 1998. For the sample enrolled in 1997, the earnings effects of the AEI is relatively more beneficial in 2000 than in 1999. Results on mobility indicate that AEI participants had a lower probability of changing branch of employment and a relatively stronger attachment to the public service sector.Selection; adult education; wage earnings; mobility

Nature or Nurture? A Note on the Misinterpreted Twin Decomposition

The classical twin model has often been used to determine whether variation in outcomes such IQ, schooling and other behavioral traits, originate from genetic endowments or environmental factors. Despite some heavy criticism from prominent scholars, the model has recently reappeared in highly ranked economics journals to perhaps spark off a revival of the method. This article seeks to specify the assumptions which generate the apparently profound divide in viewpoints. A general problem is that most authors do not properly discuss the underlying assumptions of the twin model. It has partly led to a disarray of thoughts, concrete examples are provided, since the interpretation of the results and the risk for misleading interpretations are not spelled out. Therefore, perhaps surprisingly, a brief account of the theories behind the main assumptions of the twin model provides a useful contribution.genes; environments

Skill needs and continuing vocational training in Sweden

The main purpose of this paper is to explore whether and how the amount of firmsponsored Continuing Vocational Training (CVT) provided in Sweden from 1999 onwards was influenced by institutional conditions. The Swedish labour market is characterised by a relatively large amount of publicly subsidised CVT. How this affects the incidence of firm-sponsored CVT ultimately depends on whether publicly financed training is a substitute for, a complement to or is independent from company training. Recent Swedish research and descriptive data suggest that elements of all three cases exist. If the two were complements, the phenomenon of underinvestment in CVT which is frequently considered to exist would be attenuated by the provision of publicly financed CVT. Support for this view hinges on the notion that public CVT evens out human capital accumulation within the labour force, that this in turn contributes to a compressed wage structure and that compressed wages have a positive influence on the provision of firm-sponsored CVT. -- Anliegen des vorliegenden Papiers ist die Untersuchung des Einflusses von institutionellen Faktoren auf die Häufigkeit betrieblicher Weiterbildung in Schweden. Hierbei wird der Zeitraum ab dem Jahr 1999 betrachtet. Der Arbeitsmarkt in Schweden ist durch ein relativ hohes Niveau öffentlicher Subventionen in berufliche Weiterbildung geprägt. Der Zusammenhang zwischen einem hohen Niveau öffentlich geförderter beruflicher Weiterbildung und betrieblicher Weiterbildung hängt davon ab, ob die beiden Finanzierungsformen substitutiv, komplementär oder unabhängig voneinander sind. Aktuelle Forschungsergebnisse deuten darauf hin, dass Elemente aller drei Wirkmechanismen existieren. Bei Komplementarität kann der oft beschriebenen Unterinvestition in betriebliche Weiterbildung begegnet werden, indem öffentlich geförderte berufliche Weiterbildung die Unterschiede in der Verteilung des Humankapitals in der Erwerbsbevölkerung ausgleicht. Dieses wiederum würde zu einer Verringerung der Lohnspreizung führen, welche dann einen positiven Einfluss auf betrieblich finanzierte Weiterbildung ausübt.

Nature, Nurture and Egalitarian Policy: What Can We Learn from Molecular Genetics?

This brief paper draws attention to molecular genetic research which may provide a new dimension to our understanding of how socioeconomic outcomes are generated. In particular, we provide an overview of the recently emerging evidence of gene-environment interaction effects. This literature points out specific policy areas which may compensate individuals carrying genetic risks, without resorting to gene mapping of the population. Such policies would also increase intergenerational mobility if genetic and/or environmental risk factors are more common in socially disadvantaged groups.gene, environment, interaction, molecular genetics, inequality

The use of near infrared (NIR) spectroscopy to improve soil mapping at the farm scale

The creation of fine resolution soil maps is hampered by the increasing costs associated with conventional laboratory analyses of soil. In this study, near infrared (NIR) reflectance spectroscopy was used to reduce the number of conventional soil analyses required by the use of calibration models at the farm scale. Soil electrical conductivity and mid infrared (MIR) reflection from a satellite image were used and compared as ancillary data to guide the targeting of soil sampling. About 150 targeted samples were taken over a 97 hectare farm (approximately 1.5 samples per hectare) for each type of ancillary data. A sub-set of 25 samples was selected from each of the targeted data sets (150 points) to measure clay and soil organic matter (SOM) contents for calibration with NIR. For the remaining 125 samples only their NIR-spectra needed to be determined. The NIR calibration models for both SOM and clay contents resulted in predictions with small errors. Maps derived from the calibrated data were compared with a map based on 0.5 samples per hectare representing a conventional farm-scale soil map. The maps derived from the NIR-calibrated data are promising, and the potential for developing a cost-effective strategy to map soil from NIR-calibrated data at the farm-scale is considerable

Does Comprehensive Education Work for the Long-term Unemployed?

This paper evaluates the effects of comprehensive adult education on wage earnings of the long-term unemployed, an essentially unexplored issue. We use register data pertaining to a large sample of long-term unemployed persons in Sweden who either enrolled in the comprehensive adult education program, participated in labour market training, or remained in open unemployment. We find that individuals with more than one semester at upper secondary level of the comprehensive adult education program experienced an increase in annual wage earnings compared with those who remained in open unemployment. For those studying at the compulsory level we find no significant effects. The estimated effects were overall negative in relation to vocational labour market training.Adult education; long-term unemployed; wage earnings

The Shape of the Income Distribution and Economic Growth: Evidence from Swedish Labor Market Regions

We analyze the association between inequality and growth across 72 labor market regions in Sweden 1990-2006. Highly accurate measures of growth and inequality (gini, Q3, p9075, p5010) are derived from population register data. The regional set-up also reduces problems with omitted variable bias and endogeneity found in cross country comparisons since the regions within a country share the same redistributive policies and institutions. The findings suggest that inequality between the 90th and 75th percentiles enhances regional growth. This result no longer holds when we take into account changes in commuting patterns. Although only suggestive, the finding is interesting in that it is consistent with the hypothesis that inequality enhances growth by stimulating commuting incentives.growth, income distribution, inequality, gini

An Evaluation of the Adult Education Initiative Relative Labor Market Training

This thesis consists of three papers which evaluate the effects of the Adult Education Initiative (AEI) in Sweden relative to the vocational part of Labor Market Training (LMT). Paper [I] studies unemployment incidence and unemployment duration for participants in the AEI relative to LMT. When evaluating the relative program effects on duration, one needs to take into account both the problem of selection and the fact that the outcome variable is right hand censored. The method used is an instrumental variable adaptation of the symmetrically trimmed least squares estimator. A bivariate probit model is used in order to study unemployment incidence. The results indicate a beneficial effect of the AEI relative to LMT on unemployment incidence, but longer duration in unemployment among the AEI participants. Paper [II] uses annual wage earnings in 1999 to compare the AEI and LMT for individuals that do not continue in education following program completion. Two separate estimation methods are used, the classical selection model and the method of matching on the propensity score. The results of both methods indicate negative effects of the AEI relative to LMT on wage earnings. The earnings effect of the AEI for individuals with a weak position in the labor market is particularly poor, implying that the official target to assist those individuals appear not to have succeeded. Paper [III] employs data for those enrolled in 1997 as well as 1998 to study the annual wage earnings of 1999 and 2000 and data on attachment to branches of employment before and after program. Data on branches of employment indicate less mobility among the AEI participants. This is largely due to a stronger attachment to the public service sector. The analysis of wage earnings of the sample enrolled in 1997, indicate that the effects on wage earnings tended to be more advantageous for the AEI in 2000 rather than 1999, possibly implying a lag in the effects of the program.Selection; adult education; wage earnings; labor market training; duration; incidence; unemployment