Why Do Lazy People Make More Money? The Strange Case of the Public Sector Wage Premium
AbstractEmpirical work suggests the presence of a public sector wage premium, the reasons for which are investigated in this paper. The results demonstrate a higher premium paid to women and premium decreases concurrent with skills. Job security undermines the incentive to work hard and forces the public sector to pay higher wages. Thus, the public sector wage premium can be used as an indicator of inefficiency in the public sector.
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 Inter-American Development Bank, Research Department in its series Research Department Publications with number 4176.
Date of creation: Aug 1999
Date of revision:
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.:
- Quinn, Joseph F, 1982. "Pension Wealth of Government and Private Sector Workers," American Economic Review, American Economic Association, vol. 72(2), pages 283-87, May.
- Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August.
- 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.
- Psacharopoulos, George & Velez, Eduardo, 1992. "Schooling, Ability, and Earnings in Colombia, 1988," Economic Development and Cultural Change, University of Chicago Press, vol. 40(3), pages 629-43, April.
- Beggs, John J & Chapman, Bruce J, 1988. "Labor Turnover Bias in Estimating Wages," The Review of Economics and Statistics, MIT Press, vol. 70(1), pages 117-23, February.
- Holmlund, Bertil, 1993.
"Wage setting in private and public sectors in a model with endogenous government behavior,"
European Journal of Political Economy,
Elsevier, vol. 9(2), pages 149-162, May.
- Holmlund, B., 1991. "Wage Setting in Private and Public Sectors in a Model with Endogenous Government Behavior," Papers 1991i, Uppsala - Working Paper Series.
- International Monetary Fund, 1997. "Corruption and the Rate of Temptation - Do Low Wages in the Civil Service Cause Corruption?," IMF Working Papers 97/73, International Monetary Fund.
- Ronald G. Ehrenberg & Joshua L. Schwarz, 1987.
"Public Sector Labor Markets,"
NBER Working Papers
1179, National Bureau of Economic Research, Inc.
- James M. Poterba & Kim S. Rueben, 1998. "Fiscal Institutions and Public Sector Labor Markets," NBER Working Papers 6659, National Bureau of Economic Research, Inc.
- Kremer, Michael, 1993. "The O-Ring Theory of Economic Development," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 551-75, August.
- Sebastian Saiegh & Marcela Montero & Anibal Pérez-Liñán & José Molinas, 2006. "Political Institutions, Policymaking Processes and Policy Outcomes in Paraguay, 1954-2003," Research Department Publications 3194, Inter-American Development Bank, Research Department.
- Sebastian Saiegh & Marcela Montero & Anibal Pérez-Liñán & José Molinas, 2006. "Instituciones políticas, procesos de diseño de políticas y resultados de políticas en Paraguay, 1954-2003," Research Department Publications 3195, Inter-American Development Bank, Research Department.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Luis Daniel Martinez).
If references are entirely missing, you can add them using this form.