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Public-Private Sector Wage Differentials: The Case of Nigeria

Author

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  • Emre Şakar

    (Usak University)

  • Mahmut Ünsal Şaşmaz

    (Usak University)

Abstract

The public and private sector labor markets may operate differently in some countries. Due to the fact that the public sector in some cases makes up a significant share of wage employment, wage settings and other employment practices in the overall labor market may be influenced by the efficiency of the public sector labor markets. For this reason, many scholars paid close attention to this topic and examined the public – private sector wage differentials in developed and developing countries. This study estimates Mincerian wage equations in public and private sector in Nigeria. The data of this study come from the 2012-2013 Nigeria General Household (GHS) Survey-Panel Wave 2, Post Planting Household Questionnare. The results are consistent with Tansel (2005) as well as the current literature. Education and experience coefficient estimates are positively statistically significant for public and private sectors. In both public and private sectors, the rate of return to education is higher than the rate of return to experience. In addition, estimated coefficients suggest that individuals working in private sector have a lower rate of return to experience and education compared to individuals working in public sector.

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Handle: RePEc:bau:ijaefs:v:2:y:2017:i:2:id:102
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