Math and Money. The causal effects of high school math on labor market outcomes

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This paper tests for the causal effects of taking more math and science,defined as studying at the science or engineering tracks in Swedishsecondary school, on future labor market outcomes. We use data on allapplicants to Swedish upper secondary schools during 1985-92 and rely onadmissions discontinuities for identification. The (preliminary) resultssuggest that more high school math and science gives rise to a wage premiumof around 10 percent. The results furthermore suggest that the effectpartially works through increased levels of university education.

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 Karin Edmark, Ph.D.

Karin Edmark, Ph.D. // IFAU - The Institute for Labour Market Policy Evaluation

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Verena Wondratschek
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