Does internal migration influence earnings following youth unemployment?: Evidence from the Swedish Labor Market
Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
The rise of youth unemployment in Sweden has highlighted the need for more research investigating the effects of unemployment on future earnings. Earlier research suggests that youth unemployment will leave labor market scares on a person’s future income. Therefore, in this thesis I investigate the question if migration can increase an individual’s future earnings and hence work as a cure for scared individuals. My theoretical argument is that migration is an investment in human capital which will lead to higher future income and may heal scars. To test my argument, I use Swedish panel data from the ASTRID database, examining unemployed individuals born 1979-1983 after finishing their education in Sweden. A nearest-neighbor propensity score matching method is applied to estimate the casual effects. However, the results show only few significant results over time and age cohorts in the data. Therefore, my conclusion is that migration barley increases income of young unemployed individuals.
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IdentifiersURN: urn:nbn:se:umu:diva-123522OAI: oai:DiVA.org:umu-123522DiVA: diva2:946309