Does Indonesia have a"low-pay"civil service?
AbstractGovernment officials and polcy analysts maintain that Indonesia's civil servants are poorly paid and have been for decades. This conclusion is supported by anecdotal evidence and casual empiricism. The authors systematically analyze the realtionship between government and private compensation levels using data from two large household surveys carried out by Indonesia's Central Bureau of Statistics: the 1998 Sakernas and 1999 Susenas. The results suggest that government workers with a high school education or less, representing three-quarters of the civil service, earn a pay premium over their private sector counterparts. Civil servants with more than a high school education earn less than they would in the private sector but, on average, the premium is far smaller than commonly is alleged and is in keeping with public/private differentials in other countries. These results prove robust to varying econometric specifications and cast doubt on low pay as an explanation for government corruption.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 2621.
Date of creation: 30 Jun 2001
Date of revision:
Decentralization; Public Health Promotion; Health Monitoring&Evaluation; National Governance; Knowledge Economy; Health Monitoring&Evaluation; NationalGovernance; Knowledge Economy; Education for the Knowledge Economy; Parliamentary Government;
Other versions of this item:
- Deon Filmer & David Lindauer, 2001. "Does Indonesia Have A 'Low Pay' Civil Service?," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 37(2), pages 189-205.
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