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An Analysis of Public- and Private-Sector Wages Allowing for Endogenous Choices of Both Government and Union Status

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Gyourko, Joseph
Tracy, Joseph

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Abstract

A general selection model is estimated in which workers select across four labor markets-private/nonunion, privat e/union, public/nonunion, and public/union. Evidence is found of posi tive selection bias in the private/nonunion sector and of negative se lection bias in the public/union sector. Union wage differentials in the public and private sectors as well as public/private wage differe ntials are contrasted. The authors discuss when it is appropriate to use each type of differential. Copyright 1988 by University of Chicago Press.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 6 (1988)
Issue (Month): 2 (April)
Pages: 229-53
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Handle: RePEc:ucp:jlabec:v:6:y:1988:i:2:p:229-53

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  1. Rita Asplund, 2002. "Private vs. Public Sector Returns to Human Capital in Finland," Discussion Papers 607, The Research Institute of the Finnish Economy. [Downloadable!]
  2. Mengistae, Taye, 1999. "Wage rates and job queues - does the public sector overpay in Ethiopia?," Policy Research Working Paper Series 2105, The World Bank. [Downloadable!]
  3. George J. Borjas, 2002. "The Wage Structure and the Sorting of Workers into the Public Sector," NBER Working Papers 9313, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Asma Hyder, 2007. "Preference for Public Sector Jobs and Wait Unemployment: A Micro Data Analysis," PIDE-Working Papers 2007:20, Pakistan Institute of Development Economics. [Downloadable!]
  5. 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!]
  6. J. David Brown & John Earle & Almos Telegdy, 2005. "Does Privatization Hurt Workers? Lessons from Comprehensive Manufacturing Firm Panel Data in Hungary, Romania, Russia, and Ukraine," CERT Discussion Papers 0509, Centre for Economic Reform and Transformation, Heriot Watt University. [Downloadable!]
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  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. Robert Kaestner, 1990. "The Effect of Illicit Drug Use on the Wages of Young Adults," NBER Working Papers 3535, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  9. Peter R. Mueser & Carolyn J. Heinrich Author-Name: Kenneth Troske, 2003. "Welfare to Temporary Work: Implications for Labor Market Outcomes," Working Papers 0308, Department of Economics, University of Missouri. [Downloadable!]
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  10. Kathy A. Paulson Gjerde, 2002. "The existence of gender-specific promotion standards in the U.S," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 23(8), pages 447-459. [Downloadable!]
  11. Rebecca M. Blank, 1993. "Public Sector Growth and Labor Market Flexibility: The United States vs. The United Kingdom," NBER Working Papers 4339, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  12. Pham, T. Hung & Reilly, Barry, 2007. "Ethnic Wage Inequality in Vietnam: Empirical Evidence from 2002," MPRA Paper 6477, University Library of Munich, Germany. [Downloadable!]
  13. Juan Prieto Rodríguez & María José Suárez Fernández, 2006. "Like father like son? Intergenerational links within occupations and public employment," Hacienda Pública Española, IEF, vol. 178(3), pages 81-111, September. [Downloadable!]
  14. Dominic J. Brewer & Eric Eide & Ronald G. Ehrenberg, 1996. "Does It Pay To Attend An Elite Private College? Cross Cohort Evidence on the Effects of College Quality on Earnings," NBER Working Papers 5613, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  15. 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!]
  16. Heitmueller, Axel, 2004. "Public-Private Sector Wage Differentials in Scotland: An Endogenous Switching Model," IZA Discussion Papers 992, Institute for the Study of Labor (IZA). [Downloadable!]
  17. Chunbing, Xing, 2006. "Human Capital and Wage Determination in Different Ownerships, 1989-97," Working Papers RP2006/121, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
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