Do Swedish upper Secondary Schools Compete through Grade Inflation?

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Supervisor: Johan Stennek

Master Degree Project No. 2016:160 Graduate School

Master Degree Project in Economics

Do Swedish upper Secondary Schools Compete through Grade Inflation?

Samuel Pedersen

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𝑆𝑐ℎ𝑜𝑜𝑙 𝑐𝑜𝑚𝑝𝑒𝑡𝑖𝑡𝑖𝑜𝑛 𝑖𝑛𝑑𝑒𝑥_𝑖,𝑡 = 1

ln (𝐸_𝑖,𝑡)𝛴 (ln (𝐸_𝑗,𝑡)

𝑑 )

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𝑆𝑐ℎ𝑜𝑜𝑙 𝑐𝑜𝑚𝑝𝑒𝑡𝑖𝑡𝑖𝑜𝑛 𝑖𝑛𝑑𝑒𝑥 (𝑀𝑖𝑠𝑟𝑎 𝑎𝑛𝑑 𝐶ℎ𝑖 2011)_𝑖,𝑡 = 1

𝐸_𝑖,𝑡𝛴 (𝐸_𝑗,𝑡 𝑑²)

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2012 2013 2014 2015

-1-.5 0.5 1

Test / Course grade inflation

0 50 100 150 200

Competition index

Competition index and Test/Course grade inflation

-.2 0.2.4.6

Re-grade grade inflation

0 20 40 60 80 100

Competition index

Competition index and re-grading inflation

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0

.02.04.06.08

Density

0 50 100 150 200

Competition index

Distribution of competition index in Test/Course grade sample

0

.02.04.06.08

Density

0 20 40 60 80 100

Competition index

Distribution of competition index in Re-grade sample

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𝑔𝑟𝑎𝑑𝑒 𝑖𝑛𝑓𝑙𝑎𝑡𝑖𝑜𝑛_{𝑖,𝑡,𝑐}=∝_𝑖+ 𝐵₁𝐶𝑜𝑚𝑝𝑒𝑡𝑖𝑡𝑖𝑜𝑛 𝑖𝑛𝑑𝑒𝑥 _𝑖,𝑡+ 𝐵₂𝐼𝑛𝑑𝑒𝑝𝑒𝑛𝑑𝑒𝑛𝑡_𝑖+ 𝐵₃𝐶𝑜𝑚𝑝𝑒𝑡𝑖𝑡𝑖𝑜𝑛 𝑖𝑛𝑑𝑒𝑥_𝑖,𝑡∗ 𝐼𝑛𝑑𝑒𝑝𝑒𝑛𝑑𝑒𝑛𝑡_𝑖+ 𝛾𝑋_𝑖,𝑡+ 𝛿𝑌𝑒𝑎𝑟_𝑡+ 𝜖_𝑖,𝑡

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=∝_𝑖+ 𝐵₁𝐶𝑜𝑚𝑝𝑒𝑡𝑖𝑡𝑖𝑜𝑛 𝑖𝑛𝑑𝑒𝑥 _𝑖+ 𝐵₂𝐼𝑛𝑑𝑒𝑝𝑒𝑛𝑑𝑒𝑛𝑡_𝑖+ 𝐵₃𝐶𝑜𝑚𝑝𝑒𝑡𝑖𝑡𝑖𝑜𝑛 𝑖𝑛𝑑𝑒𝑥_𝑖∗ 𝐼𝑛𝑑𝑒𝑝𝑒𝑛𝑑𝑒𝑛𝑡_𝑖+ 𝛾𝑋_𝑖+ 𝜖_𝑖

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0

100200300400

Frequency

-1 -.5 0 .5 1

Test/Course grade inflation

English 2012-2015

0

100200300

Frequency

-100 -50 0 50 100

Testcoursedifference

Mathematics 2012-2015

0

100200300

Frequency

-100 -50 0 50 100

Testcoursedifference

Swedish 2012-2015

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010203040

Frequency

-.2 0 .2 .4

Re-grade inflation

English

050100

Frequency

-.1 -.05 0 .05 .1

Re-grade inflation

Mathematics

0102030

Frequency

-.2 0 .2 .4 .6

Re-grade inflation

Swedish

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β

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β β

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β