ABSTRACT
This chapter assesses the return to education in different regions. It provides an overview of some Swedish labour market characteristics, and describes the extended human capital framework which is used to study the regional return to education. The return to education is comprehended as a link between the market of labour and the market of education. New technologies and ideas most often emanate from regions with an industrial tradition and availability to individuals with qualified education. Individuals with a high level of education are not induced to stay in the forest counties, and so they will move. A low premium to education does not give incentives to acquire higher education if one wants to stay in the region. The incentives to acquire education is low in such regions and individuals with higher education move to regions where the reward to education is higher.
