Abstract:

This paper analyses the long-run distributional effects of the increase of compulsory schooling implemented in Sweden after WWII. To assess the extent of inequality of opportunity, we focus on the distribution of labor market earnings, conditional on father's education. According to equality of opportunity theories, any gap in the distribution of earnings attributable to differences in family background should be interpreted as inequality of opportunity. The reform is said to equalize opportunities if it reduces the gaps in the conditional income distribution, across different levels of parental education. We assess the effect of the reform using estimates of the quantile treatment effects of the reform conditional on family background. Our identification exploits the quasi-experimental implementation of the reform. Our results first indicate significant inequality of opportunity for earnings acquisition among post-WWII Swedish cohorts. Second, while the educational expansion policy had virtually no effect on the average level of earnings of treated individuals, it allowed to significantly equalize opportunities by closing the gap in the opportunity profile of children of low vs. high education parents.

Location:

CEPS, ENS Paris-Saclay
4 avenue des Sciences, 91190, Gif-sur-Yvette