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Public-Private Sector Wage Differential In Estonia: Evidence From Quantile Regression

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Author Info
Kristjan-Olari Leping

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Abstract

In this paper the wage differential between the public and private sector is estimated by means of the quantile regression method, which will provide a more complex picture of the distribution of the public-private sector wage differential than can be obtained with ordinary mean regression. The evidence from quantile regression shows that there is a negative wage differential for higher quantiles, but no significant difference in wages for lower quantiles. The other main results are that women benefit more from working in the public sector than men, and that employees with higher educational levels benefit more from working in the public sector than low-educated workers.

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Publisher Info
Paper provided by Faculty of Economics and Business Administration, University of Tartu (Estonia) in its series University of Tartu - Faculty of Economics and Business Administration Working Paper Series with number 39.

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Length: 43 pages
Date of creation: 2005
Date of revision:
Handle: RePEc:mtk:febawb:39

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Related research
Keywords: Public sector; wage differential; quantile regression;

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This paper has been announced in the following NEP Reports: References listed on IDEAS
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.:
  1. Marit Hinnosaar, 2002. "Unemployment and Labour Mobility in Estonia: Analysis Using Duration Models," Bank of Estonia Working Papers 2002-07, Bank of Estonia, revised 13 Oct 2002. [Downloadable!]
  2. C. Lucifora & D. Meurs, 2004. "The Public Sector Pay Gap in France, Great Britain and Italy," Working Papers ERMES 0403, ERMES, University Paris 2. [Downloadable!]
    Other versions:
  3. Borjas, George J, 1984. "Electoral Cycles and the Earnings of Federal Bureaucrats," Economic Inquiry, Oxford University Press, vol. 22(4), pages 447-59, October.
  4. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January. [Downloadable!] (restricted)
  5. 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)
  6. Charles Brown & James L. Medoff, 1989. "The Employer Size-Wage Effect," NBER Working Papers 2870, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  7. Sharon P. Smith, 1976. "Pay differential between federal government and private sector workers," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 29(2), pages 179-197, January.
  8. Morley Gunderson, 1979. "Earnings Differentials between the Public and Private Sectors," Canadian Journal of Economics, Canadian Economics Association, vol. 12(2), pages 228-42, May. [Downloadable!] (restricted)
  9. Blaise Melly, 2005. "Public-private sector wage differentials in Germany: Evidence from quantile regression," Empirical Economics, Springer, vol. 30(2), pages 505-520, 09. [Downloadable!] (restricted)
  10. 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. [Downloadable!]
  11. 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. [Downloadable!] (restricted)
  12. Heitmueller, Axel, 2004. "Public-Private Sector Wage Differentials in Scotland: An Endogenous Switching Model," IZA Discussion Papers 992, Institute for the Study of Labor (IZA). [Downloadable!]
  13. Roger Koenker & Kevin F. Hallock, 2001. "Quantile Regression," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 143-156, Fall. [Downloadable!] (restricted)
  14. Burdett, Kenneth & Mortensen, Dale T, 1998. "Wage Differentials, Employer Size, and Unemployment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(2), pages 257-73, May.
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Cited by:
(explanations, 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.)

  1. Kristjan-Olari Leping, 2006. "Evolution of the Public--Private Sector Wage Differential during Transition in Estonia," Post-Communist Economies, Taylor and Francis Journals, vol. 18(4), pages 419-436, December. [Downloadable!] (restricted)
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