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Sweden Education Reform - Econometric Analysis

Overview

This project investigates the impact of Sweden’s 1940s educational reform on schooling and labor market outcomes using econometric techniques. A difference-in-differences (DiD) approach is applied to assess how the reform influenced years of education and earnings, following the framework of Meghir & Palme (2005).

Key Features

  • 📊 Causal Analysis: Estimates the effect of the reform using difference-in-differences.
  • 📈 Regression Models: Applies multiple OLS regressions, interaction terms, and fixed effects.
  • 🏛️ Policy Insights: Examines how the reform affected different socioeconomic groups.

Dataset & Methodology

  • Dataset: Swedish survey data on individuals born in 1948 and 1953.
  • Method: Difference-in-differences regression to isolate reform effects.
  • Variables: Years of schooling, earnings, parental education, and ability levels.
  • Tools: Implemented in R, using packages like tidyverse, lmtest, stargazer, and plm.

Installation & Usage

1️⃣ Clone the repository

git clone https://github.com/your-username/your-repo-name.git
cd your-repo-name

2️⃣ Install required R packages

install.packages(c("tidyverse", "lmtest", "stargazer", "plm", "sandwich", "car", "lfe", "knitr"))

3️⃣ Run the analysis script

source("project_51.R")

Results Summary

✔ Increased education: The reform led to a significant rise in schooling years, particularly for students from lower-income backgrounds.
✔ Higher earnings: The additional education translated into increased wages, especially for those with less-educated parents.
✔ Gender & Socioeconomic Effects: Differences were observed in how the reform impacted males vs. females and students from different family backgrounds.

Authors

👤 Yuval Bakirov 👤 Eitan Bakirov

About

An econometric analysis of Sweden’s 1940s education reform using a difference-in-differences approach to estimate its impact on schooling and earnings.

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