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A Distributional Analysis of Public–Private Wage Differential in India

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  • Mehtabul Azam
  • Nishith Prakash

Abstract

In this paper, we examine public–private wage differential among men in India across the entire wage distribution. We find that the raw wage gap between public and private sector is positive across the entire wage distribution in both urban and rural areas. A quantile regression-based decomposition reveals that that the public sector workers enjoy a positive wage premium across the entire wage distribution in both urban and rural areas, although the magnitude of wage premium is smaller at the top quantiles.

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  • Mehtabul Azam & Nishith Prakash, 2015. "A Distributional Analysis of Public–Private Wage Differential in India," LABOUR, CEIS, vol. 29(4), pages 394-414, December.
    • Handle: RePEc:bla:labour:v:29:y:2015:i:4:p:394-414
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    Cited by:

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    2. Deshpande, Ashwini & Goel, Deepti & Khanna, Shantanu, 2018. "Bad Karma or Discrimination? Male–Female Wage Gaps Among Salaried Workers in India," World Development, Elsevier, vol. 102(C), pages 331-344.
    3. Paweł Strawiński & Agnieszka Skierska, 2016. "Public–private gap along the wage distribution in Poland," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 44.
    4. Taiwo Aderemi & Ibrahim Alley, 2019. "Gender pay gap in the workplace: the case of public and private sectors in Nigeria," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 21(2), pages 370-391, December.
    5. Prakash, Nishith, 2020. "The impact of employment quotas on the economic lives of disadvantaged minorities in India," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 494-509.
    6. Clément Imbert, 2011. "Decomposing wage inequality: Public and private sectors in Vietnam 1993-2006," Working Papers halshs-00564653, HAL.
    7. Anuneeta Mitra, 2016. "Education and earning linkages of regular and casual workers in India: a quantile regression approach," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 18(1), pages 147-174, October.
    8. Clément Imbert, 2013. "Decomposing the Labor Market Earnings Inequality: The Public and Private Sectors in Vietnam, 1993–2006," The World Bank Economic Review, World Bank, vol. 27(1), pages 55-79.
    9. Amir Borges Ferreira Neto & Ricardo Da Silva Fregugli, 2014. "How Much Does Talent Matter? Evidences From The Brazilian Formal Cultural Industry," Anais do XLI Encontro Nacional de Economia [Proceedings of the 41st Brazilian Economics Meeting] 233, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    10. Rahul Menon, 2019. "Short-term contracts and their effect on wages in Indian regular wage employment," The Economic and Labour Relations Review, , vol. 30(1), pages 142-164, March.
    11. Sonu Madan, 2019. "Wage Differentials Among Workers: An Empirical Analysis of the Manufacturing and Service Sectors," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 62(4), pages 731-747, December.
    12. Smrutirekha Singhari & S.Madheswaran, 2015. "Is there a Glass Ceiling or Sticky Floor in India? Examining the Wage Gap across the Wage Distribution," EcoMod2015 8345, EcoMod.
    13. Rahul MENON, 2021. "Determinants of inequality in Indian regular wage employment, 1993–2012," International Labour Review, International Labour Organization, vol. 160(3), pages 477-500, September.
    14. Tansel, Aysit & Keskin, Halil Ibrahim & Ozdemir, Zeynel Abidin, 2020. "Public-private sector wage gap by gender in Egypt: Evidence from quantile regression on panel data, 1998–2018," World Development, Elsevier, vol. 135(C).

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    More about this item

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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