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The public-private sector wage gap in Zambia in the 1990s: A quantile regression approach

Author

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  • Michael Rosholm

    () (Department of Economics, University of Aarhus Building 350, DK-8000 Aarhus C, Denmark)

  • Helena Skyt Nielsen

    () (Department of Economics, Aarhus School of Business, Fuglesangs AllÊ 20, DK-8210 Aarhus V, Denmark)

Abstract

We investigate the determinants of wages in Zambia and based on the quantile regression approach, we analyze how their effects differ at different points in the wage distribution and over time. We use three cross-sections of Zambian household data from the early nineties, which was a period of economic transition, because items as privatization and deregulation were on the political agenda. The focus is placed on the public-private sector wage gap, and the results show that this gap was relatively favorable for the low-skilled and less favorable for the high-skilled. This picture was further strengthened during the period 1991-1996.

Suggested Citation

  • 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.
  • Handle: RePEc:spr:empeco:v:26:y:2001:i:1:p:169-182
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    Cited by:

    1. Aysit Tansel & Fatma Bircan Bodur, 2012. "Wage Inequality and Returns to Education in Turkey: A Quantile Regression Analysis," Review of Development Economics, Wiley Blackwell, vol. 16(1), pages 107-121, February.
    2. Azam, Mehtabul, 2012. "Changes in Wage Structure in Urban India, 1983–2004: A Quantile Regression Decomposition," World Development, Elsevier, vol. 40(6), pages 1135-1150.
    3. Emanuela di Gropello, 2006. "Meeting the Challenges of Secondary Education in Latin America and East Asia : Improving Efficiency and Resource Mobilization," World Bank Publications, The World Bank, number 7173, April.
    4. Gorodnichenko, Yuriy & Sabirianova Peter, Klara, 2007. "Public sector pay and corruption: Measuring bribery from micro data," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 963-991, June.
    5. Evangelos M. Falaris, 2008. "A Quantile Regression Analysis of Wages in Panama," Review of Development Economics, Wiley Blackwell, vol. 12(3), pages 498-514, August.
    6. Asma Hyder, 2007. "Preference for Public Sector Jobs and Wait Unemployment: A Micro Data Analysis," PIDE-Working Papers 2007:20, Pakistan Institute of Development Economics.
    7. Jelena Lausev, 2014. "WHAT HAS 20 YEARS OF PUBLIC–PRIVATE PAY GAP LITERATURE TOLD US? EASTERN EUROPEAN TRANSITIONING vs. DEVELOPED ECONOMIES," Journal of Economic Surveys, Wiley Blackwell, vol. 28(3), pages 516-550, July.
    8. RAMDANI, Dendi & VAN WITTELOOSTUIJN, Arjen, 2009. "Board independence, CEO duality and firm performance: A quantile regression analysis for Indonesia, Malaysia, South Korea and Thailand," Working Papers 2009004, University of Antwerp, Faculty of Applied Economics.
    9. Selahattin Güriş & Ebru Çağlayan, 2012. "Returns to education and wages in Turkey: robust and resistant regression," Quality & Quantity: International Journal of Methodology, Springer, vol. 46(5), pages 1407-1416, August.
    10. Tansel, Avsit, 2005. "Public-Private Employment Choice, Wage Differentials, and Gender in Turkey," Economic Development and Cultural Change, University of Chicago Press, vol. 53(2), pages 453-477, January.
    11. Hospido, Laura & Moral-Benito, Enrique, 2016. "The public sector wage premium in Spain: Evidence from longitudinal administrative data," Labour Economics, Elsevier, vol. 42(C), pages 101-122.
    12. repec:cmj:networ:y:2017:i:10:p:97-105 is not listed on IDEAS
    13. Sayın San & Özgür Polat, 2012. "Estimation of Public–Private Wage Differentials in T urkey with Sample Correction," The Developing Economies, Institute of Developing Economies, vol. 50(3), pages 285-298, September.
    14. Barton, Nicholas & Bold, Tessa & Sandefur, Justin, 2017. "Measuring Rents from Public Employment: Regression discontinuity evidence from Kenya," CEPR Discussion Papers 12105, C.E.P.R. Discussion Papers.
    15. Nicholas Barton & Tessa Bold & Justin Sandefur, 2017. "Measuring Rents from Public Employment: Regression Discontinuity Evidence from Kenya - Working Paper 457," Working Papers 457, Center for Global Development.
    16. Lovász, Anna & Altwicker-Hámori, Szilvia, 2013. "A köz- és a magánszféra kereseti különbségei Magyarországon, 2002-2008. Javíthat-e hosszú távon a közalkalmazottak relatív helyzetén egy 50 százalékos béremelés?
      [An assessment of Hungary s public/
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 500-522.
    17. 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.
    18. Disney, Richard F & Gosling, Amanda, 2003. "A New Method for Estimating Public Sector Pay Premia: Evidence from Britain in the 1990's," CEPR Discussion Papers 3787, C.E.P.R. Discussion Papers.
    19. Vladimir Gimpelson & Anna Lukiyanova & Anna Sharunina, 2015. "Estimating the Public-Private Wage Gap in Russia: What Does Quantile Regression Tell Us?," HSE Working papers WP BRP 104/EC/2015, National Research University Higher School of Economics.
    20. Manabu Nose, 2015. "Estimation of Drivers of Public Education Expenditure; Baumol’s Effect Revisited," IMF Working Papers 15/178, International Monetary Fund.
    21. Mizala, Alejandra & Romaguera, Pilar & Gallegos, Sebastián, 2011. "Public–private wage gap in Latin America (1992–2007): A matching approach," Labour Economics, Elsevier, vol. 18(S1), pages 115-131.
    22. repec:kap:itaxpf:v:24:y:2017:i:3:d:10.1007_s10797-016-9410-7 is not listed on IDEAS
    23. Mehtabul Azam & Nishith Prakash, 2015. "A Distributional Analysis of Public–Private Wage Differential in India," LABOUR, CEIS, vol. 29(4), pages 394-414, December.

    More about this item

    Keywords

    Quantile regression · public-private wage differential · Zambia.;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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