Anders Stenberg

Nature, nurture and socioeconomic policy-What can we learn from molecular genetics?

Many countries use public resources to compensate individuals with genetic disorders, identified by behaviors/symptoms such as chronic diseases and disabilities. This paper draws attention to molecular genetic research which may provide a new dimension to our understanding of how socioeconomic outcomes are generated. We provide an overview of the recently emerging evidence of gene-environment interaction effects. This literature points out specific areas where policies may compensate groups of individuals carrying genetic risks, without the need to identify anyones genetic endowments. Moreover, epigenetics studies, which concern heritable changes in gene functions that occur independently of the DNA sequence, have shown that environments may affect heritable traits across generations. It means that policies which neutralize adverse environments may also increase intergenerational mobility, given that genetic and/or environmental risk factors are more common in socially disadvantaged groups.

Interpreting estimates of heritability – A note on the twin decomposition

While most outcomes may in part be genetically mediated, quantifying genetic heritability is a different matter. To explore data on twins and decompose the variation is a classical method to determine whether variation in outcomes, e.g. IQ or schooling, originate from genetic endowments or environmental factors. Despite some criticism, the model is still widely used. The critique is generally related to how estimates of heritability may encompass environmental mediation. This aspect is sometimes left implicit by authors even though its relevance for the interpretation is potentially profound. This short note is an appeal for clarity from authors when interpreting the magnitude of heritability estimates. It is demonstrated how disregarding existing theoretical contributions can easily lead to unnecessary misinterpretations and/or controversies. The key arguments are relevant also for estimates based on data of adopted children or from modern molecular genetics research.

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.

Does Formal Education for Older Workers Increase Earnings? — Evidence Based on Rich Data and Long‐Term Follow‐Up

Governments in Europe, Canada and the USA have expressed an ambition to stimulate education of older. In this paper, we analyse if there are effects on annual earnings of formal education for participants aged 42–55 at the time of enrolment in 1994–95. The analysis explores longitudinal population register data stretching from 1982 to 2007. The method used is difference-in-differences propensity score matching based on a rich set of covariates, including indicators of health and labor market marginalization. Our findings underline the importance of long follow up periods and imply positive effects for women, especially so for women with children, and no significant average earnings effects for men. These results differ from earlier studies but are stable to several alternative assumptions regarding unobservable characteristics. Data further indicate that the gender gap in our estimates may stem from differences in underlying reasons for enrolment.

Does Expert Advice Improve Educational Choice

This paper reports evidence that an individual meeting with a study counselor at high school significantly improves the quality of choice of tertiary educational field, as self-assessed 18 months after graduation from college. To address endogeneity, we explore the variation in study counseling practices between schools as an instrumental variable (IV). Following careful scrutiny of the validity of the IV, our results indicate a significant and positive influence of study counseling on the quality of educational choice, foremost among males and those with low educated parents. The overall result is stable across a number of robustness checks.

Education and retirement: Does University education at mid-age extend working life?

To our knowledge, this paper provides the first study evaluating the effects of higher education for adults on the timing of retirement. Using detailed longitudinal population register data 1982–2010, we track first-time enrollees in higher education in 1992–1993. Our sample is aged 42–55 at the time of enrollment and thus aged 60–73 in 2010. We find that higher education increases labor market survival rates when aged 61–66 by about 5 percentage points. The estimates represent relatively large effects. Tentative calculations indicate that if enrollment occurs at age 42, the retirement delay represents about one percent in yearly earnings returns per year of tertiary education.JEL classificationH52, H55, I28

Earnings over the Life Course: General versus Vocational Education

Two common hypotheses regarding the relative benefits of vocational versus general education are (1) that vocational skills enhance relative short-term earnings and (2) that general skills enhance relative long-term earnings. Empirical evidence for these hypotheses has remained limited. Based on Swedish registry data of individuals in short (2-year) upper secondary school programs, this study provides a first exploration of individuals’ earnings across nearly complete careers. The descriptive earnings patterns indicate support for both hypotheses 1 and 2. The support holds when grade point average and family fixed effects are controlled for and also when enrollment in further education and fertility decisions are taken into account.

The impact on annual earnings of adult upper secondary education in Sweden

The public supply of adult education is very different between countries, making it likely that there is scope for efficiency gains. The contribution of this paper is to provide an economic evaluation of the earnings impact of adult education at upper secondary level (AE) in Sweden, where the supply is plausibly larger than in any other country. The analysis is based on register data for 1990–2002 of the cohort born in 1970 on accomplished AE course credits and possibly subsequent higher education. Difference‐in‐differences estimates indicate that for AE enrolees in 1994–1996, a year of AE credits increased earnings in 2002 by 6% for males and by 4.5% for females. The estimates are reconciled with conflicting results from earlier studies. According to crude calculations, which disregard other societal benefits of AE, the earnings benefits are sufficient to cover the costs incurred by society within 17 years.