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The Public and Private Sector Pay Gap in Pakistan: A Quantile Regression Analysis

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Author Info
Asma Hyder (NUST Institute of Management Sciences, Rawalpindi.)
Barry Reilly (Department of Economics, University of Sussex, UK.)

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Abstract

This paper examines the magnitude of public/private wage differentials in Pakistan using data drawn from the 2001-02 Pakistan Labour Force Survey. As in many other countries, public sector workers in Pakistan tend both to have higher average pay and education levels as compared to their private sector counterparts. In addition, the public sector in Pakistan has both a more compressed wage distribution and a smaller gender pay gap than that prevailing in the private sector. Our empirical analysis suggests that about two-fifths of the raw differential in average hourly wages between the two sectors is accounted for by differentials in average characteristics. The estimated public sector mark-up, ceteris paribus, is of the order of 49 percent and is substantial by the standards of developed economies. The quantile regression estimates suggest that the mark-up was found to decline monotonically with movement up the conditional wage distribution. In particular, the premium at the 10th percentile was estimated at 92 percent as compared to a more modest 20 percent at the 90th percentile.

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Publisher Info
Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

Volume (Year): 44 (2005)
Issue (Month): 3 ()
Pages: 271-306
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:pid:journl:v:44:y:2005:i:3:p:271-306

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  6. James M. Poterba & Kim S. Rueben, 1994. "The Distribution of Public Sector Wage Premia: New Evidence Using Quantile Regression Methods," NBER Working Papers 4734, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  19. van der Gaag, Jacques & Stelcner, Morton & Vijverberg, Wim, 1989. "Wage Differentials and Moonlighting by Civil Servants: Evidence from Cote d'Ivoire and Peru," World Bank Economic Review, Oxford University Press, vol. 3(1), pages 67-95, January.
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Shabbar Jaffry & Yaseen Ghulam & Vyoma Shah, 2006. "Inter-industry Wage Differentials in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(4), pages 925-946. [Downloadable!]
  2. Faiz Bilquees, 2006. "Civil Servants’ Salary Structure," PIDE-Working Papers 2006:4, Pakistan Institute of Development Economics. [Downloadable!]
  3. Bilquees, Faiz, 2006. "Civil Servants’ Salary Structure," MPRA Paper 2245, University Library of Munich, Germany. [Downloadable!]
  4. Asma Hyder, 2007. "Wage Differentials, Rate of Return to Education, and Occupational Wage Share in the Labour Market of Pakistan," PIDE-Working Papers 2007:17, Pakistan Institute of Development Economics. [Downloadable!]
    Other versions:
  5. Pham, Hung T & Reilly, Barry, 2007. "The Gender Pay Gap In Vietnam, 1993-2002: A Quantile Regression Approach," MPRA Paper 6475, University Library of Munich, Germany. [Downloadable!]
  6. Paul Miller, 2009. "The Gender Pay Gap in the US: Does Sector Make a Difference?," Journal of Labor Research, Springer, vol. 30(1), pages 52-74, March. [Downloadable!] (restricted)
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