Wage determinants in the Swedish tourism sector

ABSTRACT

A significant number of the jobs that are found in the tourism sector are relatively low-paying positions. The share of part-time employment is also large. This study focuses on individuals who have remained in the sector for many years and are making a career in tourism. The analysis is based on a balanced panel consisting of individuals who, between 2002 and 2011, lived and worked full time in the tourism industry in central Sweden. Data were analyzed using three different models; a cross-sectional OLS model was utilized for the analysis of the data from 2011 and both a pooled OLS model as well as a fixed-effect model were used in the analysis of data between 2002 and 2011. The fixed-effect model is important because it captures differences in ability among the individuals included in the study. The results show a lower income for individuals in the tourism sector compared to the rest of the economy. However, the results of the panel data estimations indicate that the effect of education is stronger for individuals in the tourism sector and that wage levels in this sector is more equal between the men and women, compared to the rest of the economy.

KEYWORDS:

• Wage equation
• tourism
• fixed-effect regression
• pooled OLS regression
• Sweden

Disclosure statement

No potential conflict of interest was reported by the author.

Additional information

Funding

This work was supported by the R&D Fund of the Swedish Tourism & Hospitality Industry.