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

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

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

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Ingrid D Woolard

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).

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Paper provided by University of Cape Town, Development Policy Research Unit in its series Working Papers with number 9660.

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Length: 26 pages
Date of creation: Feb 2002
Date of revision:
Publication status: Published in Working Paper Series by the Development Policy Research Unit, February 2002, pages 1-26
Handle: RePEc:ctw:wpaper:9660

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James M. Poterba & Kim S. Rueben, 1994. "The Distribution of Public Sector Wage Premia: New Evidence Using Quantile Regression Methods," NBER Working Papers 4734, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June. [Downloadable!] (restricted)
Haroon Bhorat, 2004. "Labour Market Challenges In The Post-Apartheid South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 72(5), pages 940-977, December. [Downloadable!] (restricted)

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