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A Modified Switching Regression Model for Earnings Differentials between the Public and Private Sectors in the Netherlands

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  • van Ophem, Hans
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    Abstract

    Using Dutch 1986 data, the wage differentials between public-sector and private-sector workers are investigated by employing a variation of the switching regression model. This model imposes fewer identification restrictions on the parameters of the model than the standard switching regression model. The estimation results show that some categories of public-sector workers earn substantially less than private-sector workers. Copyright 1993 by MIT Press.

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    Bibliographic Info

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

    Volume (Year): 75 (1993)
    Issue (Month): 2 (May)
    Pages: 215-24

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    Handle: RePEc:tpr:restat:v:75:y:1993:i:2:p:215-24

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    Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535

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    Cited by:
    1. Fabien Postel-Vinay & Hélène Turon, 2007. "The Public Pay Gap in Britain: Small Differences That (Don't?) Matter," Economic Journal, Royal Economic Society, vol. 117(523), pages 1460-1503, October.
    2. Patrinos, Harry Anthony & Ridao-Cano, Cris & Sakellariou, Chris, 2006. "Estimating the returns to education : accounting for heterogeneity in ability," Policy Research Working Paper Series 4040, The World Bank.
    3. Christofides, Louis N. & Pashardes, Panos, 2002. "Self/paid-employment, public/private sector selection, and wage differentials," Labour Economics, Elsevier, vol. 9(6), pages 737-762, December.
    4. 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.
    5. Panizza, Ugo & Qiang, Christine Zhen-Wei, 2005. "Public-private wage differential and gender gap in Latin America: Spoiled bureaucrats and exploited women?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 34(6), pages 810-833, December.
    6. Clémence Berson, 2009. "Private vs. Public Sector : Discrimination against Second-Generation Immigrants in France," Documents de travail du Centre d'Economie de la Sorbonne 09059, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    7. Gorodnichenko, Yuriy & Sabirianova Peter, Klara, 2007. "Public sector pay and corruption: Measuring bribery from micro data," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 963-991, June.
    8. Asplund, Rita, 2002. "Private vs. Public Sector Returns to Human Capital in Finland," Discussion Papers 607, The Research Institute of the Finnish Economy.
    9. Dustmann, C. & van Soest, A., 1997. "Public and Private Sector Wages of Male Workers in Germany," Economics Working Papers eco97/13, European University Institute.
    10. repec:hal:cesptp:halshs-00423944 is not listed on IDEAS
    11. Gregory, Robert G. & Borland, Jeff, 1999. "Recent developments in public sector labor markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 53, pages 3573-3630 Elsevier.

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