Regional Sorting of Human Capital: The Choice of Location among Young Adults in Sweden

Berck P., Tano, S. and Westerlund O. Regional sorting of human capital: the choice of location among young adults in Sweden, Regional Studies. Migration rates are highest among young adults, especially students, and their location choices affect the regional distribution of human capital, growth and local public sector budgets. Using Swedish register data on young adults, the choice of whether to enrol in education and the choice of location are estimated jointly. The results indicate a systematic selection into investment in further education based on school grades and associated preferences for locations with higher per capita tax bases. For students, the estimates indicate lower preferences for locations with higher shares of older people. The importance of family networks for the choice of location is confirmed.