This is the first study to use an achievement test score to analyze whether the income gap between second-generation immigrants and natives is caused by a skill gap rather than ethnic discrimination. Since, in principle, every male Swedish citizen takes the test when turning 18, we are able to...

type="main" <p>This study uses US survey data and Swedish register data to estimate and compare the relationship between returns to schooling and ability. A significant and positive relationship is found for Sweden, but not for the USA. Based on the predictions of the optimal schooling model it is...</p>

This paper adds to the sparse literature on the consequences of education-occupation mismatches. It examines the income penalty for field of education-occupation mismatches for men and women with higher education degrees in Sweden and reveals that the penalty for such mismatches is large for...