Privatization of upper-secondary schools in Sweden: the impact on teachers' wage
Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
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.
IdentifiersURN: urn:nbn:se:lnu:diva-34968OAI: oai:DiVA.org:lnu-34968DiVA: diva2:723658
Business Administration and Economics Programme, 240 credits