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Preference for Public Sector Jobs and Wait Unemployment: A Micro Data Analysis

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  • Asma Hyder

    (Pakistan Institute of Development Economics, Islamabad)

Abstract

This paper exploits responses on the stated preferences for public sector jobs among a sample of unemployed in Pakistan to inform on the existence of public sector job queues. The empirical approach allowed job preference to influence unemployment duration. The potential wage advantage an unemployed individual would enjoy in a public sector job was found to exert no independent influence on the stated preference indicating that fringe benefits and work conditions are perhaps more important considerations. The stated preference for a public sector job was found to be associated with higher uncompleted durations. The estimated effect suggests that, on average and controlling for education and other characteristics, those unemployed who stated a preference for public sector jobs had higher uncompleted durations of between four and six months. This finding was taken to confirm that there are long queues for public sector jobs in Pakistan.

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File URL: http://www.pide.org.pk/pdf/Working%20Paper/working%20paper-20.pdf
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Bibliographic Info

Paper provided by Pakistan Institute of Development Economics in its series PIDE-Working Papers with number 2007:20.

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Length: 18 pages.
Date of creation: 2007
Date of revision:
Handle: RePEc:pid:wpaper:2007:20

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Keywords: Wage Differentials; Wage Structure; Unemployment: Models; Duration; Incidence; and Job Search;

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  1. Gyourko, Joseph & Tracy, Joseph, 1988. "An Analysis of Public- and Private-Sector Wages Allowing for Endogenous Choices of Both Government and Union Status," Journal of Labor Economics, University of Chicago Press, vol. 6(2), pages 229-53, April.
  2. John M. Abowd & Henry S. Farber, 1982. "Job queues and the union status of workers," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 35(3), pages 354-367, April.
  3. Taye Mengistae, 1998. "Wage rates and job queues: does the public sector overpay in Ethiopia?," Economics Series Working Papers WPS/1998-20, University of Oxford, Department of Economics.
  4. Koenker,Roger, 2005. "Quantile Regression," Cambridge Books, Cambridge University Press, number 9780521608275, April.
  5. Asma Hyder & Barry Reilly, 2005. "The Public Sector Pay Gap in Pakistan: A Quantile Regression Analysis," PRUS Working Papers 33, Poverty Research Unit at Sussex, University of Sussex.
  6. van der Gaag, Jacques & Vijverberg, Wim, 1988. "A Switching Regression Model for Wage Determinants in the Public and Private Sectors of a Developing Country," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 244-52, May.
  7. Terrell, Katherine, 1993. "Public-private wage differentials in Haiti Do public servants earn a rent?," Journal of Development Economics, Elsevier, vol. 42(2), pages 293-314, December.
  8. Upadhyay, Mukti P, 1994. "Accumulation of Human Capital in LDCs in the Presence of Unemployment," Economica, London School of Economics and Political Science, vol. 61(243), pages 355-78, August.
  9. Poirier, Dale J., 1980. "Partial observability in bivariate probit models," Journal of Econometrics, Elsevier, vol. 12(2), pages 209-217, February.
  10. Stewart, Mark B, 1982. "On Least Squares Estimation when the Dependent Variable is Grouped," The Warwick Economics Research Paper Series (TWERPS) 207, University of Warwick, Department of Economics.
  11. Michael Rosholm & Helena Skyt Nielsen, 2001. "The public-private sector wage gap in Zambia in the 1990s: A quantile regression approach," Empirical Economics, Springer, vol. 26(1), pages 169-182.
  12. Faiz Bilquees, 2006. "Civil Servants’ Salary Structure," PIDE-Working Papers 2006:4, Pakistan Institute of Development Economics.
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Cited by:
  1. Fasih, Tazeen & Kingdon, Geeta & Patrinos, Harry Anthony & Sakellariou, Chris & Soderbom, Mans, 2012. "Heterogeneous returns to education in the labor market," Policy Research Working Paper Series 6170, The World Bank.

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