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Public-private wage gaps : is civil-servant human capital sector-specific?
[Les écarts de salaire public-privé : un capital humain spécifique à la fonction publique ?]

Author

Listed:
  • Magali Beffy

    (CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - Groupe ENSAE-ENSAI - Groupe des Écoles Nationales d'Économie et Statistique - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - Groupe ENSAE-ENSAI - Groupe des Écoles Nationales d'Économie et Statistique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique, INSEE - Institut national de la statistique et des études économiques (INSEE))

  • Thierry Kamionka

    (CNRS - Centre National de la Recherche Scientifique, CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - Groupe ENSAE-ENSAI - Groupe des Écoles Nationales d'Économie et Statistique - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - Groupe ENSAE-ENSAI - Groupe des Écoles Nationales d'Économie et Statistique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique, IP Paris - Institut Polytechnique de Paris)

Abstract

What would be the counterfactual wage of civil servants if they were employed in the private sector? Using the French European Household panel, we present a new approach to the wage differential between the public and the private sectors. We estimate a model, which controls both for selection into employment, and for selfselection into the public sector. We also introduce unobserved heterogeneity in the propensity to be employed in either job sector, and in the sector-specific productivity. Evidence based on the counterfactual distributions suggests a large public-private wage premium for low public wages. This conclusion also holds for women but may be explained by a weaker discrimination in the public sector. Unlike women, most male civil servants would earn more in the private sector.

Suggested Citation

  • Magali Beffy & Thierry Kamionka, 2010. "Public-private wage gaps : is civil-servant human capital sector-specific? [Les écarts de salaire public-privé : un capital humain spécifique à la fonction publique ?]," Working Papers hal-05484693, HAL.
    • Handle: RePEc:hal:wpaper:hal-05484693
    Note: View the original document on HAL open archive server: https://insee.hal.science/hal-05484693v1
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