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Can workers switch it up? - Organizational forms in the Swedish preschool sector

Author

Listed:
  • Edmark, Karin

    (Swedish Institute for Social Research (SOFI), Stockholm University)

  • Persson, Lovisa

    (Research Institute for Industrial Research (IFN). Kristianstad University College and Uppsala Center for Fiscal Studies (UCFS), Uppsala University)

Abstract

The Swedish preschool sector, which is heavily dominated by a female workforce, is marked by low wages and poor health outcomes. Our study shows that preschools’ organizational form is significantly associated with hiring practices, wage-setting, and worker health outcomes. For-profit preschools tend to hire younger, less qualified, and less experienced workers, and pay lower wages even after controlling for observable and unobservable worker characteristics. Non-profit providers hire fewer preschool teachers and younger workers, similarly to the for-profits, but on the other hand tend to hire workers with more experience and higher upper secondary school grades. Wages in non-profits are, on average, higher than in for-profit and municipal preschools. Worker health outcomes are better in non-profit and for-profit preschools compared to municipal preschools. Overall, the results suggest that worker composition, wages and health outcomes differ between employer types. Whether these differences matter for preschool quality is a relevant topic for future research.

Suggested Citation

  • Edmark, Karin & Persson, Lovisa, 2026. "Can workers switch it up? - Organizational forms in the Swedish preschool sector," Working Paper Series 2026:4, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    • Handle: RePEc:hhs:ifauwp:2026_004
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    Keywords

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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out

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