Investment in Second-Chance Education for adults and income development in Sweden

Abstract

This article investigates the relation between the second chance of increase in formal education amongst low-educated adults in Sweden and long-term wage development. Despite the awareness of the role of education for employability and individuals' overall life chances, surprisingly few studies have investigated the wage effects of Second-Chance Education for adults. Research contributions referring to long-term effects of such educational investment are particularly limited. In this study, we use a longitudinal register database compiled by Statistics Sweden where we follow all low-educated adults in Sweden from 1992 over a time span of 12 years. The results show both impressive direct and long-term positive effects on wages after the adult attainment of a completed secondary education. In further analysis, a large proportion of the long-term effects are shown to relate to further educational attainment after the completion of Second-Chance Secondary Education. The conclusion drawn is that Second-Chance Education in Sweden is an effective tool for improving long-term labour market prospects and economic opportunities for low-educated adults, not least through its ability to start educational trajectories.