University Choice, Equality, and Academic Performance

Abstract: This thesis consists of three essays that examine issues on university attendance behavior, factorsof university completion, and the labor market value of a university diploma in Sweden.Essay [I] analyzes how the rapid expansion of higher education that increased the geographicalaccessibility to higher education in the 1990s affected university enrollment decisions amongvarious socioeconomic groups of young adults in Sweden. The empirical findings show that theprobability of enrollment in university education increases with accessibility to universityeducation. The results also indicate that accessibility adds to the likelihood of attending auniversity within the region of residence. Access to higher education more locally seems to havedecreased the social distance to higher education, meaning that the option of attending highereducation, as compared to entering the local labor market after upper secondary school, hasbecome a more common and a more natural alternative for more socioeconomic groups insociety.Essay [II] compares the performance of students in universities built before and after the largedecentralization and expansion of the higher educational system in Sweden, starting in the late1970s. Two outcome measures are used: (i) whether or not the student has obtained a degreewithin seven years after she initiated her studies; and (ii) whether or not she obtained 120 creditpoints (the requirement for most undergraduate degrees) within seven years. Controlling forseveral background variables as well as GPA scores in a binomial probit model, we show thatstudents at old universities are about 5 percentage points more likely to get a degree and about 9percentage points more likely to obtain 120 credit points. However, in an extended bivariatemodel where we consider selection on unobservables into university type, we cannot reject thepossibility of no difference in performance between the two university types.Essay [III] analyzes the labor market value of a university diploma (sheepskin) in Sweden. Incontrast to previous studies, this study only focuses on Swedish university students who havethree years of full time university education or more − where some have obtained a universitydegree, others not. The results show that for male students, the wage premium of possessing adegree, i.e. the sheepskin effect, is roughly 5-8 percent. For women, it is about 6-7 percent forthose who have completed four years of fulltime or more. For students who attended a moreprestigious university in the metropolitan areas in Sweden and majored in the natural sciences, asheepskin effect of roughly 13 percent for men and 22 percent for women is traced. However,this result did not hold among students who attended.Keywords: Higher education, university enrollment; university choice; accessibility; universitycompletion; selection bias; propensity score matching, sheepskin, human capital.