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Public employment and earnings inequality: An analysis based on conditional and unconditional quantile regressions

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  • Fournier, Jean-Marc
  • Koske, Isabell

Abstract

Studies investigating the link between public employment and earnings inequality based on micro data typically make use of conditional quantile regressions. Such analysis reveals why earnings may be more or less dispersed among public-sector than private-sector workers, but does not allow drawing conclusions about its impact on overall earnings inequality. The unconditional quantile regression technique proposed by Firpo et al. (2009) overcomes this deficiency, and this technique is applied here to show that a fall in public employment may raise or reduce earnings inequality, depending on country specificities. The paper also highlights the complementary roles of conditional and unconditional quantile regressions in investigating the determinants of earnings inequality.

Suggested Citation

  • Fournier, Jean-Marc & Koske, Isabell, 2013. "Public employment and earnings inequality: An analysis based on conditional and unconditional quantile regressions," Economics Letters, Elsevier, vol. 121(2), pages 263-266.
    • Handle: RePEc:eee:ecolet:v:121:y:2013:i:2:p:263-266
    DOI: 10.1016/j.econlet.2013.08.015
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    References listed on IDEAS

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    Cited by:

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    3. Simone Balestra & Uschi Backes-Gellner, 2014. "Heterogeneous effects of pupil-to-teacher ratio policies - A look at class size reduction and teacher aide," Economics of Education Working Paper Series 0102, University of Zurich, Department of Business Administration (IBW), revised Apr 2017.
    4. Deborah A. Cobb-Clark & Sonja C. Kassenboehmer & Mathias G. Sinning, 2013. "Locus of Control and Savings," Ruhr Economic Papers 0455, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    5. Evangelista, Rui & Silva, João Andrade e & Ramalho, Esmeralda A., 2022. "How heterogeneous is the impact of energy efficiency on dwelling prices? Evidence from the application of the unconditional quantile hedonic model to the Portuguese residential market," Energy Economics, Elsevier, vol. 109(C).
    6. Cobb-Clark, Deborah A. & Kassenboehmer, Sonja C. & Sinning, Mathias G., 2016. "Locus of control and savings," Journal of Banking & Finance, Elsevier, vol. 73(C), pages 113-130.
    7. Simone Balestra & Uschi Backes-Gellner, 2017. "Heterogeneous effects of pupil-to-teacher ratio policies - A look at class size reduction and teacher aide," Economics of Education Working Paper Series 0130, University of Zurich, Department of Business Administration (IBW).
    8. Yee, Karol Mark Ramirez, 2023. "Raising the floor while lowering the ceiling: Reduced inequities in education returns in the Philippines," International Journal of Educational Development, Elsevier, vol. 101(C).
    9. Amina Ika Micah, 2022. "Three essays on access to credit and financial shock in Nigeria," Economics PhD Theses 0422, Department of Economics, University of Sussex Business School.
    10. Gimpelson, Vladimir & Lukiyanova, Anna & Sharunina, Anna, 2019. "Economics and Politics of the Public-Private Wage Gap (The Case of Russia)," IZA Discussion Papers 12247, Institute of Labor Economics (IZA).
    11. Goodwin, John & Routledge, James, 2021. "Determinants of the duration of the voluntary administration process: An unconditional quantile regression analysis," Journal of Contemporary Accounting and Economics, Elsevier, vol. 17(3).
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    More about this item

    Keywords

    Quantile regression; Income inequality; Public employment;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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