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Differences in Skill Levels of Educated Workers Between the Public and private Sectors, the Return to Skills and the Connection between them: Evidence from the PIAAC Surveys

Author

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  • Yuval Mazar

    () (Bank of Israel)

Abstract

This study relates to a series of countries, and examines how the private sector differs from the public sector in the distribution of cognitive skills that characterize educated workers, and what variables are correlated with these differences. We find that in almost all countries, the return on skills is higher in the private sector, but there is a high level of variance between countries. The gap in returns in Israel is similar to the average of the other countries among men, and relatively high among women. The wider the gap is, the higher the skills of workers in the private sector are relative to the skills of those employed in the public sector. It was also found that the higher the country’s per capita GDP is, the higher the skills of educated men in the public sector are relative to the skills of educated men in the private sector.​

Suggested Citation

  • Yuval Mazar, 2018. "Differences in Skill Levels of Educated Workers Between the Public and private Sectors, the Return to Skills and the Connection between them: Evidence from the PIAAC Surveys," Bank of Israel Working Papers 2018.01, Bank of Israel.
  • Handle: RePEc:boi:wpaper:2018.01
    as

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    File Function: First version, 2018
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    References listed on IDEAS

    as
    1. David Gill & Victoria Prowse, 2014. "Gender differences and dynamics in competition: The role of luck," Quantitative Economics, Econometric Society, vol. 5, pages 351-376, July.
    2. Günther, Christina & Ekinci, Neslihan Arslan & Schwieren, Christiane & Strobel, Martin, 2010. "Women can't jump?--An experiment on competitive attitudes and stereotype threat," Journal of Economic Behavior & Organization, Elsevier, vol. 75(3), pages 395-401, September.
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    4. Uri Gneezy & Kenneth L. Leonard & John A. List, 2009. "Gender Differences in Competition: Evidence From a Matrilineal and a Patriarchal Society," Econometrica, Econometric Society, vol. 77(5), pages 1637-1664, September.
    5. Hanushek, Eric A. & Schwerdt, Guido & Wiederhold, Simon & Woessmann, Ludger, 2015. "Returns to skills around the world: Evidence from PIAAC," European Economic Review, Elsevier, vol. 73(C), pages 103-130.
    6. repec:eme:rleczz:s0147-9121(2011)0000033008 is not listed on IDEAS
    7. Christopher Cotton & Frank McIntyre & Joseph Price, 2010. "The Gender Gap Cracks Under Pressure: A Detailed Look at Male and Female Performance Differences During Competitions," Working Papers 2010-18, University of Miami, Department of Economics.
    8. A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
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    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Return to Skills; Workers self selection;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J39 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Other

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