Abstract:
This paper evaluates the impact on students' educational and labour market trajectories of local supply variations in fields of upper secondary education in Sweden. It takes a broad approach and studies the overall, reduced form, effects on several short-, medium- and long- term outcomes. The results highlight the multidimensional impact of educational supply; expanding supply of one track increases its admission rates, but also leads to a redistribution of students across programs. Increased supply is furthermore associated with decreasing average school peer ability, but also with smaller class sizes, and a higher likelihood of getting into one's top ranked program. There is no strong evidence of any long-term effects on the labour market outcomes of local youth - a finding that may reflect the multifaceted short-run impacts.