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Schooling and the distribution of wages in the european private and public sectors

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  • Budria, Santiago

Abstract

International research has shown that schooling enhances within-groups wage dispersion. This assessment is typically based on private sector data and, up to date, the inequality implications of schooling have not been documented for the public sector. This paper uses recent data from eight European countries to explicitly take into account differences between the private and public sectors. Using quantile regression, the paper describes the effects of schooling on the location and shape of the conditional wage distribution in each sector. While the average impact of schooling on wages is similar across sectors, the impact of schooling on within-groups dispersion is found to be substantially larger in the private sector than in the public sector. This finding warns that the effects of the European educational expansion on overall within-groups dispersion may be lower than previously thought.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 90.

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Date of creation: Sep 2006
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Handle: RePEc:pra:mprapa:90

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Keywords: Returns to schooling; Quantile regression; Within-groups wage inequality;

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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.
  2. Szilvia Hamori & Anna Lovasz, 2011. "Can a fifty percent increase in public sector wages improve the position of public sector employees in the long run? An assessment of the public-private income gap in Hungary," Budapest Working Papers on the Labour Market 1106, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
  3. Harry Patrinos & Cristobal Ridao-Cano & Chris Sakellariou, 2009. "A note on schooling and wage inequality in the public and private sector," Empirical Economics, Springer, vol. 37(2), pages 383-392, October.
  4. Ramos, Raul & Sanromá, Esteban & Simón, Hipólito, 2014. "Public-Private Sector Wage Differentials by Type of Contract: Evidence from Spain," IZA Discussion Papers 8158, Institute for the Study of Labor (IZA).
  5. Monojit Chatterji & Terhi Maczulskij & Jaakko Pehkonen, 2008. "Public Sector Pay in Finland," Dundee Discussion Papers in Economics 213, Economic Studies, University of Dundee.
  6. Terhi Maczulskij & Jaakko Pehkonen, 2011. "Public-Private Sector Pay Gaps in Finland: A Quantile Regression Analysis," Finnish Economic Papers, Finnish Economic Association, vol. 24(2), pages 111-127, Autumn.

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