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A Modified Switching Regression Model for Earnings Differentials between the Public and Private Sectors in the Netherlands

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  • van Ophem, Hans

Abstract

Using Dutch 1986 data, the wage differentials between public-sector and private-sector workers are investigated by employing a variation of the switching regression model. This model imposes fewer identification restrictions on the parameters of the model than the standard switching regression model. The estimation results show that some categories of public-sector workers earn substantially less than private-sector workers. Copyright 1993 by MIT Press.

Suggested Citation

  • van Ophem, Hans, 1993. "A Modified Switching Regression Model for Earnings Differentials between the Public and Private Sectors in the Netherlands," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 215-224, May.
  • Handle: RePEc:tpr:restat:v:75:y:1993:i:2:p:215-24
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    Cited by:

    1. Morikawa, Masayuki, 2016. "A comparison of the wage structure between the public and private sectors in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 39(C), pages 73-90.
    2. Denis Fougère & Julien Pouget, 2003. "Les déterminants économiques de l'entrée dans la fonction publique," Économie et Statistique, Programme National Persée, vol. 369(1), pages 15-48.
    3. Dickson, Matt & Postel-Vinay, Fabien & Turon, Hélène, 2014. "The lifetime earnings premium in the public sector: The view from Europe," Labour Economics, Elsevier, vol. 31(C), pages 141-161.
    4. Dustmann, Christian & van Soest, Arthur, 1998. "Public and private sector wages of male workers in Germany," European Economic Review, Elsevier, vol. 42(8), pages 1417-1441, September.
    5. Moundir, Lassassi & Menna, Khaled, 2016. "La Notion De « Femmes Au Foyer » En Algerie, Une Realite Ou Une Representation Nostalgique
      [The Notion Of “ Homemaker” In Algeria, A Reality Or A Nostalgic Representation]
      ," MPRA Paper 85740, University Library of Munich, Germany.
    6. repec:mse:cesdoc:09059r is not listed on IDEAS
    7. 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.
    8. Christofides, Louis N. & Pashardes, Panos, 2002. "Self/paid-employment, public/private sector selection, and wage differentials," Labour Economics, Elsevier, vol. 9(6), pages 737-762, December.
    9. 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.
    10. Fabien Postel-Vinay & Hélène Turon, 2007. "The Public Pay Gap in Britain: Small Differences That (Don't?) Matter," Economic Journal, Royal Economic Society, vol. 117(523), pages 1460-1503, October.
    11. Clémence Berson, 2009. "Private vs. Public Sector: Discrimination against Second-Generation Immigrants in France," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00423944, HAL.
    12. Menna, Khaled & Lassassi, Moundir, 2016. "المرأة الماكثة في البيت في الجزائر: قدرات منسية؟!
      [The Housewives In Algeria: Forgotten Capacities?]
      ," MPRA Paper 85421, University Library of Munich, Germany.
    13. Panizza, Ugo & Qiang, Christine Zhen-Wei, 2005. "Public-private wage differential and gender gap in Latin America: Spoiled bureaucrats and exploited women?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 34(6), pages 810-833, December.
    14. Louis Christofides & Maria Michael, 2013. "Exploring the public-private sector wage gap in European countries," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-53, December.
    15. Paolo Ghinetti, 2014. "A New Look at the Public Wage Premium in Italy: The Role of Schooling Endogeneity," LABOUR, CEIS, vol. 28(1), pages 87-111, March.
    16. Dustmann, C. & van Soest, A.H.O., 1995. "Generalized switching regression analysis of private and public sector wage structures in Germany," Discussion Paper 1995-44, Tilburg University, Center for Economic Research.
    17. Asplund, Rita, 2002. "Private vs. Public Sector Returns to Human Capital in Finland," Discussion Papers 607, The Research Institute of the Finnish Economy.
    18. Patrinos, Harry Anthony & Ridao-Cano, Cris & Sakellariou, Chris, 2006. "Estimating the returns to education : accounting for heterogeneity in ability," Policy Research Working Paper Series 4040, The World Bank.
    19. Gregory, Robert G. & Borland, Jeff, 1999. "Recent developments in public sector labor markets," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 53, pages 3573-3630 Elsevier.
    20. repec:eee:labchp:v:3:y:1999:i:pc:p:3573-3630 is not listed on IDEAS
    21. 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.

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