Arbeitspapier

Self-employed tutor pricing model

One of the biggest problems faced by freelance tutors is choosing a price. Too high or too low, and tutors lose out on earnings. What should a tutor take into account when setting a price? This project surveys the relevant economic literature - most importantly wage determination - to specify a tutor pricing model, and then applies econometric methods to test the model. The data set used is from Knowledge Roundtable, which is a website matching independent tutors to students, and contains data on 1,250 tutors from around the United States. Using the natural logarithm of tutor price as the dependent variable, it was found that education level, years of experience (tenure and age), having a professional certification related to teaching, teaching technical subjects, income level by zip code, and population density have positive and statistically significant effects on tutor price. Surprisingly, the coefficients on binary variables for gender, test prep, and versatility (offering both technical and nontechnical subjects) were not statistically significant. While the R2 of 0.21 in the final model is in line with conventional wage determination studies, it also supports the need for research into additional determinants of earnings, especially if the goal is to help individual tutors choose the right price.

Sprache
Englisch

Erschienen in
Series: Working Paper ; No. 2016-11

Klassifikation
Wirtschaft

Ereignis
Geistige Schöpfung
(wer)
Hansen, Tyler
Rand, Jared
Ereignis
Veröffentlichung
(wer)
University of Massachusetts, Department of Economics
(wo)
Amherst, MA
(wann)
2016

Handle
Letzte Aktualisierung
20.09.2024, 08:21 MESZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Hansen, Tyler
  • Rand, Jared
  • University of Massachusetts, Department of Economics

Entstanden

  • 2016

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