invariant heterogeneity. Among those who continued to higher education, abil-
ity differences are controlled for via the grade point average attained in upper
secondary school. Together with the fact that the sample used is homogenous
with respect to age and that there is data on credits actually attained in AE, this
study presents both more detailed and more reliable estimates of the impact of
AE on annual wage earnings.
The results indicate that the equivalent of one year of full time AE render
very different returns depending on educational attainment prior to AE en-
rolment. The estimates range from 15 per cent for males with only compulsory
school to 5 per cent for those with two-year upper secondary school. A general
result is that more than one semester of studies is a minimum for positive re-
turns. When analyzing the subjects studied, those traditionally associated with
general human capital, e.g. Swedish, Maths, English, are not linked to any
positive effects. Instead, the positive results appear to have been driven by
more specific courses such as computer science and health related subjects. In-
dividuals with a prior three-year upper secondary education essentially show
negative effects for men and zero effects for women. These results are more
difficult to interpret as AE credits were not necessarily associated with im-
provements in their level of education.
For the AE participants that continued to higher education, it is found that
females with AE have a lower probability of completing four years of higher
studies compared with individuals without AE. For males, a prior AE has no
significant effect on the number of years accomplished in higher studies. The
payoff to annual wage earnings is not significantly different for individuals
with AE prior to enrolment if the higher studies amount to two years or more.
For those with less than two years at university, the wage earnings gains with a
prior AE are significantly lower than for those without AE.
IFAU - Does adult education at upper secondary level influence annual wage earnings?
41