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A Reexamination of the Federal-Private Wage Differential in the United States

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  • Moulton, Brent R

Abstract

The federal-private wage differential is reexamined with recent data. Using specifications similar to those used in three previous studies, the author finds that the federal-private wage differential has narrowed since the 1974-79 period analyzed in those studies. In addition, he discovers that wage differentials based on specifications used in the literature are biased upward because the previous studies did not control for detailed occupational and locational characteristics of workers. Corrected point estimates of the wage gap are much smaller than previous estimates in the literature. Differences in the gap across demographic groups, occupations, and locations are also discussed. Copyright 1990 by University of Chicago Press.

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Bibliographic Info

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

Volume (Year): 8 (1990)
Issue (Month): 2 (April)
Pages: 270-93

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Handle: RePEc:ucp:jlabec:v:8:y:1990:i:2:p:270-93

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Web page: http://www.journals.uchicago.edu/JOLE/

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Cited by:
  1. 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.
  2. Gimpelson, V. & Kapeliushnikov, R. & Lukyanova, A. & Ryzhikova, Z. & Kulyaeva, G., 2010. "Ownership and Wage Differentiation in Russia," Journal of the New Economic Association, New Economic Association, issue 5, pages 48-72.
  3. Justin Falk, 2012. "Comparing Wages in the Federal Government and the Private Sector: Working Paper 2012-03," Working Papers 42922, Congressional Budget Office.
  4. 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.
  5. Gibbs, Michael, 2005. "Returns to Skills and Personnel Management: U.S. DoD Scientists and Engineers," IZA Discussion Papers 1539, Institute for the Study of Labor (IZA).
  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.
  7. Helene Turon & Fabien Postel-Vinay, 2005. "The Public Pay Gap in Britain: Small Differences that (Don't?) Matter," 2005 Meeting Papers 92, Society for Economic Dynamics.
  8. Bender, Keith A, 1998. " The Central Government-Private Sector Wage Differential," Journal of Economic Surveys, Wiley Blackwell, vol. 12(2), pages 177-220, April.
  9. Bargain, Olivier & Melly, Blaise, 2008. "Public Sector Pay Gap in France: New Evidence Using Panel Data," IZA Discussion Papers 3427, Institute for the Study of Labor (IZA).
  10. Elliott, R. F. & Bender, K. A., . "Relative Earnings in the UK Public sector: The Impact of Pay Reform on Pay Structure," Working Papers 98-04, Department of Economics, University of Aberdeen.
  11. Jesús CLEMENTE & Millán DIAZ-FONCEA & Carmen MARCUELLO & Marcos SANSO-NAVARRO, 2012. "The Wage Gap Between Cooperative And Capitalist Firms: Evidence From Spain," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 83(3), pages 337-356, 09.
  12. 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.
  13. repec:fth:prinin:282 is not listed on IDEAS
  14. 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.
  15. Dale Belman & John S. Heywood, 2004. "Public wage differentials and the treatment of occupational differences," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 23(1), pages 135-152.

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