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Privatization of upper-secondary schools in Sweden: the impact on teachers' wage
Linnaeus University, School of Business and Economics, Department of Economics and Statistics.
Linnaeus University, School of Business and Economics, Department of Economics and Statistics.
2014 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

The main objective of this bachelor essay is to analyse the impact of increased competition on upper-secondary teachers’ wage. In 1994, the introduction of a school voucher system in Sweden facilitated the expansion of private upper-secondary schools. Based on monopsony and quasi-market, we assess the extent to which the tendency towards increased competition has had any significant effect on upper-secondary teachers’ wage. Using a semi-logarithmic wage equation and cross-sectional individual data we found that upper-secondary school teachers employed in 2010 in the region characterised by the highest degree of competition had significantly higher wage compared to teachers employed in regions with a lower degree of competition. In addition, our findings suggest that upper-secondary teachers employed in the public sector had on average higher wages than private employees. To investigate the wage gap between the two sectors further, we perform a quantile regression.  We found that up to the 80th percentile teachers employed in private school experience, ceteris paribus, a wage penalty. On the other hand, in the upper tail of the wage distribution we found a significant wage premium for teachers in the private sector.

Place, publisher, year, edition, pages
2014. , 36 p.
National Category
URN: urn:nbn:se:lnu:diva-34968OAI: diva2:723658
Educational program
Business Administration and Economics Programme, 240 credits
Available from: 2014-06-19 Created: 2014-06-11 Last updated: 2014-06-19Bibliographically approved

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