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A Comparison of Wage Levels and Wage Inequality in the Public and Private Sectors, 1995 and 2000

Author

Listed:
  • Ingrid Woolard

    (Southern Africa Labour and Development Research Unit, University of Cape Town)

Abstract

This paper sets out to investigate relative wages and wage dispersion for formal sector workers in the private and public sectors. The paper explicitly measures the size of the public sector wage premium and offers some reasons for its existence. It also attempts to document the changing pattern of wage differentials between public and private sector employees between 1995 and 2000. Three sources of differences in the public and private sector wage distributions are considered. These are: differences in the distributions of worker characteristics in the two sectors; differences in the returns to various worker characteristics in the two sectors; and differences in the distributions of unexplained wage residuals across sectors (Juhn, Murphy and Pierce, 1993).

Suggested Citation

  • Ingrid Woolard, 2002. "A Comparison of Wage Levels and Wage Inequality in the Public and Private Sectors, 1995 and 2000," Working Papers 02062, University of Cape Town, Development Policy Research Unit.
    • Handle: RePEc:ctw:wpaper:02062
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    File URL: http://hdl.handle.net/11427/7205
    File Function: First version, 2002
    Download Restriction: no
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    Citations

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    Cited by:

    1. Magejo, Prudence & Benhura, Miracle, 2015. "A Detailed Decomposition Analysis of the Public-Private Sector Wage Gap in South Africa," IZA Discussion Papers 9271, Institute of Labor Economics (IZA).
    2. Haroon Bhorat & Karmen Naidoo & Morné Oosthuizen & Kavisha Pillay, 2015. "Demographic, employment, and wage trends in South Africa," WIDER Working Paper Series wp-2015-141, World Institute for Development Economic Research (UNU-WIDER).
    3. Haroon Bhorat & Karmen Naidoo & Morné Oosthuizen & Kavisha Pillay, 2015. "Demographic, employment, and wage trends in South Africa," WIDER Working Paper Series 141, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    South Africa: wage residuals; relative wages; wage dispersion; formal sector workers;
    All these keywords.

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics

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