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A Switching Regression Model for Wage Determinants in the Public and Private Sectors of a Developing Country

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Author Info
van der Gaag, Jacques
Vijverberg, Wim
Abstract

Governments in less developed countries face severe budgetary constraints. Given that public sector employment is a large part of modern sector employment, the government wage bill h as come under increased scrutiny. The central question is how do gove rnment wages compare with those in the private sector? In this paper, the authors develop and estimate a model to answer this question. An important aspect of this model is the endogenous treatment of sector choice. The estimation results (full information maximum likelihood) sound a strong warning against the use of ordinary least squares est imates that are based on sector-specific samples. Data are from the I vory Coast. Copyright 1988 by MIT Press.

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Publisher Info
Article provided by MIT Press in its journal Review of Economics & Statistics.

Volume (Year): 70 (1988)
Issue (Month): 2 (May)
Pages: 244-52
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Handle: RePEc:tpr:restat:v:70:y:1988:i:2:p:244-52

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  1. Asma Hyder & Barry Reilly, 2005. "The Public Sector Pay Gap in Pakistan: A Quantile Regression Analysis," PRUS Working Papers 33, Poverty Research Unit at Sussex, University of Sussex. [Downloadable!]
  2. Rama, Martin, 1999. "The Sri Lankan unemployment problem revisited," Policy Research Working Paper Series 2227, The World Bank. [Downloadable!]
  3. Ignacio García-Pérez & Juan F. Jimeno, 2005. "Public sector wage gaps in Spanish regions," Banco de España Working Papers 0526, Banco de España. [Downloadable!]
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  4. Luis Eduardo Arango & Carlos Esteban Posada & José Darío Uribe, 2004. "Cambios en la Estructura de los Salarios Urbanos en Colombia (1984-2000)," BORRADORES DE ECONOMIA 002088, BANCO DE LA REPÚBLICA. [Downloadable!]
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  5. Asma Hyder & Barry Reilly, 2005. "The Public and Private Sector Pay Gap in Pakistan: A Quantile Regression Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 44(3), pages 271-306. [Downloadable!]
  6. Disney, Richard F & Gosling, Amanda, 2003. "A New Method for Estimating Public Sector Pay Premia: Evidence from Britain in the 1990's," CEPR Discussion Papers 3787, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  7. Aysit Tansel, 1999. "Public-Private Employment Choice, Wage Differentials and Gender in Turkey," Working Papers 797, Economic Growth Center, Yale University. [Downloadable!]
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  8. Richard Disney & Amanda Gosling, 2008. "Changing public sector wage differentials in the UK," IFS Working Papers W08/02, Institute for Fiscal Studies. [Downloadable!]
  9. Christian Dustmann & Arthur Van Soest, 1997. "Wage structures in the private and public sectors in West Germany," Fiscal Studies, Institute for Fiscal Studies, vol. 18(3), pages 225-247, August. [Downloadable!]
  10. Jing Cao, 2008. "A Dynamic Computable General Equilibrium Analysis of Environmental Taxation and "Rural-Urban" Migration Distrotions in China," EEPSEA Research Report rr2008011, Economy and Environment Program for Southeast Asia (EEPSEA), revised Jan 2008. [Downloadable!]
  11. Kristensen, Nicolai & Verner, Dorte, 2005. "Labor market distortions in Cote d'Ivoire : analyses of employer-employee data from the manufacturing sector," Policy Research Working Paper Series 3771, The World Bank. [Downloadable!]
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