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Public Sector Wages and Bureaucratic Quality: Evidence from Latin America

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  • Ugo Panizza

Abstract

The purpose of this paper is to present evidence on public-private wage differential for a sample of Latin American countries and to discuss the relationship between public-private wage differentials and bureaucratic quality in the Region. The paper starts by estimating public-private wage differentials for a sample of 17 Latin American countries covering 88 percent of the population of the Region. Next, the paper looks at the relationship between bureaucratic quality and public-private wage differentials and finds that, while there is no correlation between average public sector wages and bureaucratic quality, there is a positive correlation between bureaucratic quality and the degree

Suggested Citation

  • Ugo Panizza, 2001. "Public Sector Wages and Bureaucratic Quality: Evidence from Latin America," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2001), pages 97-152, August.
    • Handle: RePEc:col:000425:008703
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    Keywords

    Public Sector Labor Market; Institutional Quality; and Corruption;
    All these keywords.

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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