Due to the substantial increase in the Swedish student loan interest rate (CSN interest rate) in recent years, questions have emerged regarding how changing loan conditions affect students' economic behavior and labor supply during their studies. The purpose of this study is to analyse how changes in the CSN interest rate are associated with students' working hours and whether this relationship differs between women and men.
The study applies a quantitative research approach based on aggregated secondary data covering the period 2005–2025 from SCB and CSN. The analysis is conducted using time-series regressions in Stata, where the average number of hours worked by students aged 15–24 serves as the dependent variable and the student loan interest rate as the independent variable. Unemployment, the Consumer Price Index (CPI), and Gross Domestic Product (GDP) are included as control variables.
The results indicate that there is no statistically significant relationship between changes in the student loan interest rate and students' working hours in the baseline model. However, when seasonal effects are included, a negative and statistically significant relationship emerges for women, whereas the corresponding relationship remains statistically insignificant for men. The analysis also indicates that students' labor supply is strongly influenced by seasonal patterns, particularly during the summer months for both women and men.
The study therefore finds limited support for the hypothesis that higher student loan interest rates lead to an increase in students' labor supply. Instead, the findings suggest that seasonal patterns are more important in explaining students' working hours than changes in the CSN interest rate.