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A Distributional Analysis of the Public-Private Wage Differential in India

Author

Listed:
  • Azam, Mehtabul

    () (Oklahoma State University)

  • Prakash, Nishith

    () (University of Connecticut)

Abstract

We investigate the public-private wage differential in India using nationally representative micro data. While the existing literature focuses on average wage differential, we study the differences in the wage distributions. The raw wage differential between public and private sector is positive across the entire distribution for both genders irrespective of area of residence. A quantile regression based decomposition analysis reveals that the differences in observed characteristics (covariate effect) account for only a small part of the wage differential at lower quantiles, but a larger part at higher quantiles. At the very top of the distribution, covariate effect account for a majority of the observed wage differential.

Suggested Citation

  • Azam, Mehtabul & Prakash, Nishith, 2010. "A Distributional Analysis of the Public-Private Wage Differential in India," IZA Discussion Papers 5132, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp5132
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    References listed on IDEAS

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    Cited by:

    1. Deshpande, Ashwini & Goel, Deepti & Khanna, Shantanu, 2018. "Bad Karma or Discrimination? Male–Female Wage Gaps Among Salaried Workers in India," World Development, Elsevier, vol. 102(C), pages 331-344.
    2. Anuneeta Mitra, 2016. "Education and earning linkages of regular and casual workers in India: a quantile regression approach," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 18(1), pages 147-174, October.
    3. Clément Imbert, 2011. "Decomposing wage inequality: Public and private sectors in Vietnam 1993-2006," Working Papers halshs-00564653, HAL.
    4. Clément Imbert, 2013. "Decomposing the Labor Market Earnings Inequality: The Public and Private Sectors in Vietnam, 1993–2006," World Bank Economic Review, World Bank Group, vol. 27(1), pages 55-79.
    5. Paweł Strawiński & Agnieszka Skierska, 2016. "Public–private gap along the wage distribution in Poland," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 44.
    6. Clément Imbert, 2011. "Decomposing wage inequality: Public and private sectors in Vietnam 1993-2006," PSE Working Papers halshs-00564653, HAL.
    7. Smrutirekha Singhari & S.Madheswaran, 2015. "Is there a Glass Ceiling or Sticky Floor in India? Examining the Wage Gap across the Wage Distribution," EcoMod2015 8345, EcoMod.

    More about this item

    Keywords

    India; public-private wage differential; quantile regression;

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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