Labour Market Outcomes for Low-Achieving Students Over the Past Three Decades in Sweden
DOI:
https://doi.org/10.63310/edu.2025.4.60021Keywords:
income, employment, longitudinal study, low achievement, school failureAbstract
While the strong correlation between school achievement and future success is well-documented, there is limited research on how this relationship has evolved over time for different groups of individuals. Specifically, it remains unclear whether and how the life chances of low-achieving students have changed over the years. This study explores the consequences of low academic achievement on labor market outcomes in Sweden from 1994 to 2019, a period marked by educational reforms. Utilizing longitudinal Swedish data from a comprehensive register database, we analyze employment rates and income levels using descriptive statistics and regression analysis. The findings reveal significant income disparities between low and high achievers, with the former facing persistently lower income levels. For younger birth cohorts, these differences are more pronounced, highlighting the increased importance of schooling. Further, it has become increasingly difficult for individuals who have experienced school failure, such as not completing compulsory school, to obtain or retain employment. For 40-year-olds, employment has decreased by 10 percentage points between older (early 1970s) and younger (late 1980s) birth cohorts. Furthermore, while substantial, the income disparities between males and females, as well as among groups with different social backgrounds, have remained relatively stable across birth cohorts.
References
Abrams, S. E. (2016). Education and the commercial mindset. Harvard University Press.
Audas, R., & Willms, J. D. (2001). Engagement and dropping out of school: A life course perspective. Human resources and social development Canada.
Breen, R., & Jonsson, J.O. (2007). Explaining change in social fluidity: educational equalization and educational expansion in twentieth-century Sweden. American Journal of Sociology, 112. 1775-810.
Belfield, C. R., & Levin, H. M. (Eds.). (2007). The price we pay: Economic and social consequences of inadequate education. Brookings Institution Press. http://www.jstor.org/stable/10.7864/j.ctt126269
Björklund, A., Fredriksson, P., Gustafsson, J-E., & Öckert, B. (2010). Den svenska utbildningspolitikens arbetsmarknadseffekter: vad säger forskningen? [The labor market effects of Swedish education policy: what does the research say?] Report 2010:13. Institute for Evaluation of Labour Market and Education Policy.
Card, D. (1999). The causal effect of education on earnings. In O. C. Ashenfelter & D. Card (Eds.), Handbook of Labor Economics (Vol. 3, pp. 1801-1863). Elsevier. doi: 10.1016/S1573-4463(99)03011-4
Carlsson, E., & Nilsson, P. (2020). New data sources in the CPI. Sweden’s economy 2020. Retrieved 2023-09-29 at https://www.scb.se/contentassets/618be4362e9a4f6a857b4d361bb3e208/svek-eng.pdf
Chávez Chávez, R., Belkin, L. D., Hornback, J. G., & Adams, K: (1991). Dropping out of school: issues affecting culturally, ethnically, and linguistically distinct student groups. The Journal of Educational Issues of Language Minority Students, 8. Boise State University, Boise, ID 83725.
Ekonomifakta (2023). Offentliga sektorns utgifter, hämtad 2023-09-29 på: https://www.ekonomifakta.se/fakta/offentlig-ekonomi/offentlig-sektor/offentliga-sektorns-utgifter/
Engdahl, M. (2016). Invandringens Arbetsmarknadseffekter. (The effects of immigration on the labour market), Institute for evaluation of labour market and education policy (IFAU) report, no. 11.
Engdahl, M., & Nybom, M. (2021). Arbetsmarknadseffekter av konjunkturnedgångar. Rapport 2021:8. Institute for Evaluation of Labour Market and Education Policy.
Eriksson, S., Hensvik, L., & Skans, O. N. (2017). Den svenska arbetsmarknaden och dess utmaningar [The Swedish labor market and its challenges]. Report 2017: 5. IFAU-Institute for Evaluation of Labour Market and Education Policy.
Fischbein, S. & Folkander, M. (2000). Reading and writing ability and dropout in the Swedish upper secondary school. European Journal of Special Needs Education, 15, 3, 264-274.
Fischbein, S., & Marx, E. (2023). A holistic view on special education in Sweden exemplified by early reading instruction. International Journal of Special Education, 38(2), 199-210.
Forslund, A., Gottfries, A., & Westermark, A. (2008). Prices, productivity and wage bargaining in open economies. Scandinavian Journal of Economics, 110(1) 169–195.
Fortin, L., Marcotte, D., Potvin, P., Royer, É., & Joly, J. (2006). Typology of students at risk of dropping out of school: Description by personal, family and school factors. European Journal of Psychology of Education, 21(4), 363-383.
Ganzach, Y., & Pazy, A. (2021). The scaling and modeling of pay and the robustness of the effect of core self-evaluations on career success. Frontiers in Psychology. doi: 10.3389/fpsyg.2021.608858
Giota, J., & Gustafsson, J. E. (2017). Perceived demands of schooling, stress and mental health: Changes from grade 6 to grade 9 as a function of gender and cognitive ability. Stress and Health, 33(3), 253-266.
Gustafsson, J. E., Allodi Westling, M., Alin Åkerman, B., Eriksson, C., Eriksson, L., Fischbein, S., & Persson, R. S. (2010). School, learning and mental health: A systematic review. Royal Swedish Academy of Sciences.
Gustafsson, J. E., & Blömeke, S. (2018). Development of school achievement in the Nordic countries during half a century. Scandinavian Journal of Educational Research, 62(3), 386–406. doi: 10.1080/00313831.2018.1434829
Halapuu, V. (2021). Access to education and disability insurance claims (Working paper 2021: 17). Uppsala: Institute for Evaluation of Labour Market and Education Policy.
IBM SPSS Statistics (2022). Statistics for Social Sciences (version 28).
Johansson, B. (2019). Dropping out of school: a systematic and integrative research review on risk factors an interventions. Retrieved from Örebro University website: http://urn.kb.se/resolve?urn=urn:nbn:se:oru:diva-77853
Kim, S., Chang, M., Singh, K., & Allen, K. R. (2015). Patterns and factors of high schooldropout risks of racial and linguistic groups. Journal of Education for Students Placed at Risk, 20(4), 336-351.
Klapp, A., Abrams, S., & Levin, H. (2017). Utbildningsekonomi – om lärandets värde [Economics of Education – the value of learning]. Natur & Kultur.
Klapp, A., & Jönsson, A. (2020). Scaffolding or simplifying: students’ perception of support in Swedish compulsory school. Eur J Psychol Educ, 36, 1055–1074. doi: 10.1007/s10212-020-00513-1
Krueger, D., & Ludwig. A. (2006). On the consequences of demographic change for rates of returns to capital, and the distribution of wealth and welfare (NBER working paper, no. 12453). NBER.
Levin, M. H. (2009). The economic payoff to investing in educational justice. Educational Researcher, 38(1), 5-20.
Lessard, A., Fortin, L., Joly, J., & Royer, E. (2005). School dropout: A review assessing the place of gender. International Journal on School Disaffection, 3(1), 30-41.
McMahon, W.W. (2009). Higher learning, greater good: the private and social benefits of higher education. The Johns Hopkins University Press.
Olson, R. K., Keenan, J. M., Byrne, B., Samuelsson, S., Coventry, W. L., Corley, R., & Hulslander, J. (2011). Genetic and environmental influences on vocabulary and reading development. Scientific Studies of Reading, 15(1), 26–46. doi: 10.1080/10888438.2011.536128
Ruist, J. (2017). Outmigration and income assimilation during the first post-EU-enlargement migrants first decade in Sweden (Working paper). University of Gothenburg, School of Business, Economics and Law.
Rumberger, R.W. (2011). Dropping out: Why students drop out of high school and what can be done about it. Harvard University Press. doi: 10.4159/harvard.9780674063167
SCB. (2022). Utbildning [Education]. Retrieved 2022-08-17 at https://www.scb.se/hitta-statistik/temaomraden/integration/utbildning/
Schultz, T.W. (1961). Investment in human capital. The American Economic Review, 51, 1-17.
Skolverket (2019). Introduktionsprogram uppföljning av gymnasieskolan 2019. [Introduction program follow-up of the upper secondary school 2019]. Skolverket.
Socialstyrelsen. (2010). Social rapport 2010. [Social report 2010] Retrieved 2022-08-17 at https://www.socialstyrelsen.se/publikationer/
Socialstyrelsen. (2017). Utvecklingen av psykisk ohälsa bland barn och unga vuxna. Till och med 2016. [The development of mental illness among children and youth. Until 2016]. Retrieved 2022-08-17 at https://www.socialstyrelsen.se/publikationer/
Sokolowski, H. M., & Ansari, D. (2018). Understanding the effects of education through the lens of biology. NPJ science of learning, 3, 17. doi: 10.1038/s41539-018-0032-y
UNICEF. (2013). Identification and monitoring of out-of-school children and dropping-out of students. The UN Children’s Fund (UNICEF) in the Republic of Kazakhstan.
Westermark, A. (2019). Is Germany a compass for Wage formation in Sweden? Sveriges Riksbank Economic Review, no. 2, pp. 91–115.
Wolff, U. (2011). Effects of a randomised reading intervention study: An application of structural equation modelling. Dyslexia, 17(4), 295-311.
Wolff, U., & Gustafsson, J.-E. (2022). Early phonological training preceding kindergarten training: effects on reading and spelling. Reading and Writing, 35(8), 1865-1887. doi: 10.1007/s11145-022-10261-x
Yang Hansen, K., & Gustafsson, J.-E. (2019). Identifying the key source of deteriorating educational equity in Sweden between 1998 and 2014. International Journal of Educational Research, 93, 79–90. doi: 10.1016/j.ijer.2018.09.012
Yang Hansen, K., Rosén, M., & Gustafsson, J.-E. (2011). Changes in the multi-level effects of socio-economic status on reading achievement in Sweden in 1991 and 2001. Scandinavian Journal of Educational Research, 55(2), 197–211
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Stefan Johansson, Alli Klapp

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
