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Public-private Wage Gaps : Is Civil-servant Human Capital Sector-specific ?

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  • Magali BEFFY

    (Crest)

  • Thierry KAMIONKA

    (Crest)

Abstract

What would be the counterfactual wage of civil servants if they were employed in theprivate sector? Using the French European Household panel, we present a newapproach to the wage differential between the public and the private sectors. Weestimate a model, which controls both for selection into employment, and for selfselectioninto the public sector. We also introduce unobserved heterogeneity in thepropensity to be employed in either job sector, and in the sector-specific productivity.Evidence based on the counterfactual distributions suggests a large public-privatewage premium for low public wages. This conclusion also holds for women but may beexplained by a weaker discrimination in the public sector. Unlike women, most malecivil servants would earn more in the private sector.

Suggested Citation

  • Magali BEFFY & Thierry KAMIONKA, 2010. "Public-private Wage Gaps : Is Civil-servant Human Capital Sector-specific ?," Working Papers 2010-55, Center for Research in Economics and Statistics.
    • Handle: RePEc:crs:wpaper:2010-55
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    References listed on IDEAS

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    Cited by:

    1. Domenico Depalo & Raffaela Giordano & Evangelia Papapetrou, 2015. "Public–private wage differentials in euro-area countries: evidence from quantile decomposition analysis," Empirical Economics, Springer, vol. 49(3), pages 985-1015, November.
    2. repec:mse:cesdoc:09059r is not listed on IDEAS
    3. Raffaela Giordano & Manuel Coutinho Pereira & Domenico Depalo & Bruno Eugène & Evangelia Papapetrou & Javier J. Pérez & Lukas Reiss & Mojca Roter, 2014. "The Public Sector Pay Gap in a Selection of Euro Area Countries in the Pre-crisis Period," Hacienda Pública Española / Review of Public Economics, IEF, vol. 214(3), pages 11-34, September.
    4. Pérez, Javier J. & Giordano, Raffaela & Depalo, Domenico & Coutinho Pereira, Manuel & Eugène, Bruno & Papapetrou, Evangelia & Reiss, Lukas & Roter, Mojca, 2011. "The public sector pay gap in a selection of Euro area countries," Working Paper Series 1406, European Central Bank.
    5. Bargain, Olivier & Etienne, Audrey & Melly, Blaise, 2018. "Public Sector Wage Gaps over the Long-Run: Evidence from Panel Administrative Data," IZA Discussion Papers 11924, Institute of Labor Economics (IZA).
    6. Jill Rubery, 2013. "Public sector adjustment and the threat to gender equality," Chapters, in: Daniel Vaughan-Whitehead (ed.), Public Sector Shock, chapter 2, pages 43-83, Edward Elgar Publishing.

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