THE OUTPUT OF THE SWEDISH EDUCATION SECTOR

The output of the Swedish education sector is defined as the addition to lifetime incomes generated by the schooling system. Using cross-sec tional information on wages, employment rates, working hours, school-p articipation and leisure time, all by years of schooling, we compute n ew output-based measures of the education sector. Measures that includ e and exclude leisure, and that are counted before and after taxes are computed for the years 1967, 1973, 1980 and 1990. Our most important conclusion is that the output-based measure differs so markedly from c onventional input-based ones that a replacement of the latter with the former would change the picture of the overall performance of the Swe dish economy over the period.