Regional concentration of university graduates : The role of high school grades and parental background

Abstract

In this paper, we analyse long-term changes in the regional distribution and migration flows of university graduates in Finland and Sweden. This study is based on detailed longitudinal population register data, including information on high school grades and parental background. We find a distinct pattern of skill divergence across regions in both countries over the last 3 decades. The uneven distribution of human capital has been reinforced by the mobility patterns of university graduates, for whom regional sorting by high school grades and parental background is evident. Our findings indicate that traditional measures of human capital concentration most likely underscore actual regional differences in productive skills.