Arbeitspapier

Mind the gap? Estimating the effects of postponing higher education

This paper estimates the effects on earnings of “gap years” between high school and university enrollment. The effect is estimated by means of standard earnings functions augmented to account for gap years and a rich set of control variables using administrative Swedish data. We find that postponement of higher education is associated with a persistent and non-trivial earnings penalty. The main source of the persistent penalty appears to be the loss of work experience after studies. Two years postponement reduces the present value of life time earnings by 40-50 percent of annual earnings at age 40.

Language
Englisch

Bibliographic citation
Series: Working Paper ; No. 2006:11

Classification
Wirtschaft
Higher Education; Research Institutions
Human Capital; Skills; Occupational Choice; Labor Productivity
Wage Level and Structure; Wage Differentials
Subject
timing of education
schooling interruptions
work experience
Bildungsökonomik
Bildungsverhalten
Zeitpräferenz
Bildungsertrag
Studium
Schweden

Event
Geistige Schöpfung
(who)
Holmlund, Bertil
Liu, Qian
Nordström Skans, Oskar
Event
Veröffentlichung
(who)
Institute for Labour Market Policy Evaluation (IFAU)
(where)
Uppsala
(when)
2006

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Holmlund, Bertil
  • Liu, Qian
  • Nordström Skans, Oskar
  • Institute for Labour Market Policy Evaluation (IFAU)

Time of origin

  • 2006

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