Public-Private Wage Gap in Australia: Variation Along the Distribution
AbstractPrevious research on public-private wage differentials in Australia is scarce and has focused on the central parts of the conditional wage distribution. Using the first six waves of the Household, Income and Labour Dynamics in Australia (HILDA) survey, this study applies quantile regression models to examine whether the sectoral wage effect varies along the wage distribution. For females, we find public sector wage premiums for almost the entire wage distribution and the premiums are relatively stable except at the extremities of the distribution. For males, the premiums decrease monotonically and are negative for the top half of the conditional wage distribution. The decomposition results show that the observed differences in individuals and job characteristics account for a substantial proportion of the overall sectoral wage gap.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Centre for Economic Policy Research, Research School of Economics, Australian National University in its series CEPR Discussion Papers with number 581.
Date of creation: Jun 2008
Date of revision:
wage gap; quantile regression; decomposition;
Find related papers by JEL classification:
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Andrews, Martyn J. & Stewart, Mark B. & Swaffield, Joanna K. & Upward, Richard, 1998. "The estimation of union wage differentials and the impact of methodological choices," Labour Economics, Elsevier, vol. 5(4), pages 449-474, December.
- Richard Disney & Amanda Gosling, 1998. "Does it pay to work in the public sector?," Fiscal Studies, Institute for Fiscal Studies, vol. 19(4), pages 347-374, November.
- Claudio Lucifora & Dominique Meurs, 2006.
"The Public Sector Pay Gap In France, Great Britain And Italy,"
Review of Income and Wealth,
International Association for Research in Income and Wealth, vol. 52(1), pages 43-59, 03.
- Lucifora, Claudio & Meurs, Dominique, 2004. "The Public Sector Pay Gap in France, Great Britain and Italy," IZA Discussion Papers 1041, Institute for the Study of Labor (IZA).
- Claudio Lucifora & Dominique Meurs, 2004. "The Public Sector Pay Gap in France, Great Britain and Italy," CHILD Working Papers wp04_04, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
- Lucifora C. & Meurs D., 2004. "The Public Sector Pay Gap in France, Great Britain and Italy," Working Papers ERMES 0403, ERMES, University Paris 2.
- Rene Morissette, 1993. "Canadian Jobs and Firm Size: Do Smaller Firms Pay Less?," Canadian Journal of Economics, Canadian Economics Association, vol. 26(1), pages 159-74, February.
- Koenker,Roger, 2005.
Cambridge University Press, number 9780521845731, April.
- José Mata & José A. F. Machado, 2005. "Counterfactual decomposition of changes in wage distributions using quantile regression," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(4), pages 445-465.
- Melly, Blaise, 2005. "Decomposition of differences in distribution using quantile regression," Labour Economics, Elsevier, vol. 12(4), pages 577-590, August.
- Chatterji, Monojit & Mumford, Karen A. & Smith, Peter N., 2007. "The Public-Private Sector Gender Wage Differential: Evidence from Matched Employee-Workplace Data," IZA Discussion Papers 3158, Institute for the Study of Labor (IZA).
- 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.
- Moshe Buchinsky, 2001. "Quantile regression with sample selection: Estimating women's return to education in the U.S," Empirical Economics, Springer, vol. 26(1), pages 87-113.
- Mark Wooden, 2000.
"Union Wage Effects in the Presence of Enterprise Bargaining,"
Melbourne Institute Working Paper Series
wp2000n07, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
- Wooden, Mark, 2001. "Union Wage Effects in the Presence of Enterprise Bargaining," The Economic Record, The Economic Society of Australia, vol. 77(236), pages 1-18, March.
- Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
- Heckman, James J, 1979.
"Sample Selection Bias as a Specification Error,"
Econometric Society, vol. 47(1), pages 153-61, January.
- Borland, Jeff & Hirschberg, Joe & Lye, Jenny, 1998.
"Earnings of Public Sector and Private Sector Employees in Australia: Is There a Difference?,"
The Economic Record,
The Economic Society of Australia, vol. 74(224), pages 36-53, March.
- Borland, J. & Hirschberg, J. & Lyse, J., 1996. "Earning of Public Sector and Private Sector Employees in Australia: Is There a Difference?," Department of Economics - Working Papers Series 514, The University of Melbourne.
- Mueller, Richard E., 1998. "Public-private sector wage differentials in Canada: evidence from quantile regressions," Economics Letters, Elsevier, vol. 60(2), pages 229-235, August.
- Dustmann, C. & Soest, A.H.O. van, 1997.
"Wage structures in the private and public sectors in West Germany,"
Open Access publications from Tilburg University
urn:nbn:nl:ui:12-74120, Tilburg University.
- 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.
- 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.
- Vella, Francis, 1993. "Nonwage Benefits in a Simultaneous Model of Wages and Hours: Labor Supply Functions of Young Females," Journal of Labor Economics, University of Chicago Press, vol. 11(4), pages 704-23, October.
- Blackaby, D. H. & Murphy, P. D. & O'Leary, N. C., 1999. "The payment of public sector workers in the UK: reconciliation with North American findings," Economics Letters, Elsevier, vol. 65(2), pages 239-243, November.
- Keith A. Bender, 2003. "Examining Equality between Public- and Private-Sector Wage Distributions," Economic Inquiry, Western Economic Association International, vol. 41(1), pages 62-79, January.
- Rees, Hedley & Shah, Anup, 1995. "Public-Private Sector Wage Differential in the U.K," The Manchester School of Economic & Social Studies, University of Manchester, vol. 63(1), pages 52-68, March.
- Markus Fr�lich, 2006. "Non-parametric regression for binary dependent variables," Econometrics Journal, Royal Economic Society, vol. 9(3), pages 511-540, November.
- Peter Siminski, 2013.
"Are low-skill public sector workers really overpaid? A quasi-differenced panel data analysis,"
Taylor & Francis Journals, vol. 45(14), pages 1915-1929, May.
- Peter Siminski, 2011. "Are Low Skill Public Sector Workers Really Overpaid? A Quasi-Differenced Panel Data Analysis," Economics Working Papers wp11-10, School of Economics, University of Wollongong, NSW, Australia.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.