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Public-private wage differentials in Greece

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  • Costas Kanellopoulos

Abstract

Separate earnings functions for public and private sector by gender are estimated for Greece with appropriate correction for selectivity bias, using Family Expenditure Survey data for 1988. Then a comparison of the average pay, that would be received by public and private sector employees if they were paid according to the same pay structure, is undertaken. The empirical evidence suggests that, while the observed pay advantage of male public sector employees is rather explained by higher qualifications, in the case of women qualification differences partly explains the observed public-private wage differential.

Suggested Citation

  • Costas Kanellopoulos, 1997. "Public-private wage differentials in Greece," Applied Economics, Taylor & Francis Journals, vol. 29(8), pages 1023-1032.
    • Handle: RePEc:taf:applec:v:29:y:1997:i:8:p:1023-1032
    DOI: 10.1080/000368497326417
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    1. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
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    4. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    5. Smith, Sharon P., 1977. "Government wage differentials," Journal of Urban Economics, Elsevier, vol. 4(3), pages 248-271, July.
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    Cited by:

    1. Tansel, Aysit & Keskin, Halil Ibrahim & Ozdemir, Zeynel Abidin, 2008. "Public versus Private Sector Wage Gap in Egypt: Evidence from Quantile Regression on Panel Data," MPRA Paper 89540, University Library of Munich, Germany.
    2. Harry A Patrinos, 2022. "Returns to Education in Greece: Evidence from the 1977 Labor Market Survey using the Greek Civil War as an Instrument," Economics Bulletin, AccessEcon, vol. 42(1), pages 288-293.
    3. Maczulskij, Terhi, 2013. "Employment sector and pay gaps: Genetic and environmental influences," Labour Economics, Elsevier, vol. 23(C), pages 89-96.
    4. Terhi Maczulskij, 2015. "Who chooses to become a public sector employee?," Working Papers 301, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    5. Evangelia Papapetrou, 2006. "The unequal distribution of the public-private sector wage gap in Greece: evidence from quantile regression," Applied Economics Letters, Taylor & Francis Journals, vol. 13(4), pages 205-210.
    6. Ricardo Hausmann & Ljubica Nedelkoska & Sehar Noor, 2020. "You Get What You Pay For: Sources and Consequences of the Public Sector Premium in Albania and Sri Lanka," CID Working Papers 376, Center for International Development at Harvard University.
    7. Tansel, Avsit, 2005. "Public-Private Employment Choice, Wage Differentials, and Gender in Turkey," Economic Development and Cultural Change, University of Chicago Press, vol. 53(2), pages 453-477, January.
    8. Montenegro, Claudio & Patrinos, Harry A., 2022. "Returns to Education in the Public and Private Sectors: Europe and Central Asia," IZA Discussion Papers 15516, Institute of Labor Economics (IZA).
    9. George Agiomirgianakis & Theodore Lianos & Nicholas Tsounis, 2019. "Returns to Investment in Distance Learning: the Case of Greece," International Business Research, Canadian Center of Science and Education, vol. 12(3), pages 94-100, March.
    10. Monojit Chatterji & Terhi Maczulskij & Jaakko Pehkonen, 2008. "Public Sector Pay in Finland," Dundee Discussion Papers in Economics 213, Economic Studies, University of Dundee.
    11. Louis Christofides & Maria Michael, 2013. "Exploring the public-private sector wage gap in European countries," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-53, December.
    12. Livanos, Ilias & Pouliakas, Konstantinos, 2008. "Returns to education by academic discipline in the Greek labour market," MPRA Paper 14159, University Library of Munich, Germany.
    13. Livanos, Ilias, 2009. "The Relationship Between Higher Education and Labour Market in Greece: the Weakest Link?," MPRA Paper 16239, University Library of Munich, Germany.
    14. Domenico Depalo & Raffaela Giordano & Evangelia Papapetrou, 2015. "Public–private wage differentials in euro-area countries: evidence from quantile decomposition analysis," Empirical Economics, Springer, vol. 49(3), pages 985-1015, November.
    15. Peter Siminski, 2013. "Are low-skill public sector workers really overpaid? A quasi-differenced panel data analysis," Applied Economics, Taylor & Francis Journals, vol. 45(14), pages 1915-1929, May.
    16. Terhi Maczulskij, 2015. "High education and public sector employment: Evidence from Finland using data on twins," Working Papers 296, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    17. Zhuravleva, Tatiana (Журавлева, Татьяна), 2015. "Analysis of the Factors of Wages Differentiation in the Public and Private Sectors of the Russian Economy [Анализ Факторов Дифференциации Заработной Платы В Государственном И Частном Секторах Эконо," Published Papers mn10, Russian Presidential Academy of National Economy and Public Administration.
    18. Ilias Livanos, 2010. "The Wage-Local Unemployment Relationship in a Highly Regulated Labour Market: Greece," Regional Studies, Taylor & Francis Journals, vol. 44(4), pages 389-400.
    19. Evangelia Papapetrou, 2006. "The Public-Private Sector Pay Differential in Greece," Public Finance Review, , vol. 34(4), pages 450-473, July.
    20. Terhi Maczulskij, 2016. "Higher education and public sector employment: evidence from Finnish data on twins," International Review of Applied Economics, Taylor & Francis Journals, vol. 30(5), pages 605-619, September.
    21. Pouliakas, Konstantinos & Livanos, Ilias, 2008. "The Gender Wage Gap as a Function of Educational Degree Choices in Greece," MPRA Paper 14168, University Library of Munich, Germany, revised 19 Mar 2009.
    22. Maczulskij, Terhi, 2013. "Public–private sector wage differentials and the business cycle," Economic Systems, Elsevier, vol. 37(2), pages 284-301.
    23. Raffaela Giordano & Manuel Coutinho Pereira & Domenico Depalo & Bruno Eugène & Evangelia Papapetrou & Javier J. Pérez & Lukas Reiss & Mojca Roter, 2014. "The Public Sector Pay Gap in a Selection of Euro Area Countries in the Pre-crisis Period," Hacienda Pública Española / Review of Public Economics, IEF, vol. 214(3), pages 11-34, September.
    24. Rebekka Christopoulou & Vassilis Monastiriotis, 2014. "The Greek Public Sector Wage Premium before the Crisis: Size, Selection and Relative Valuation of Characteristics," British Journal of Industrial Relations, London School of Economics, vol. 52(3), pages 579-602, September.

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