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Public-Private Sector Wage Differentials by Type of Contract: Evidence from Spain

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Listed author(s):
  • Ramos, Raul

    ()

    (University of Barcelona)

  • Sanromá, Esteban

    ()

    (University of Barcelona)

  • Simón, Hipólito

    ()

    (Universidad de Alicante)

Abstract

The article examines public-private sector wage differentials in Spain using microdata from the Structure of Earnings Survey (Encuesta de Estructura Salarial). When applying various decomposition techniques, we find that it is important to distinguish by gender and type of contract. Our results also highlight the presence of a positive wage premium for public sector workers that can be partially explained by their better endowment of characteristics, in particular by the characteristics of the establishment where they work. The wage premium is greater for female and fixed-term employees and falls across the wage distribution, being negative for more highly skilled workers.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 8158.

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Length: 34 pages
Date of creation: Apr 2014
Publication status: published in: Hacienda Pública Española/Review of Public Economics, 2014, 208 (1), 107-141
Handle: RePEc:iza:izadps:dp8158
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Keywords: public-private sector wage gap; decomposition methods; matched employer-employee data; wage distribution;

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Find related papers by JEL classification:
  • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
  • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
  • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
  • J4 - Labor and Demographic Economics - - Particular Labor Markets

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Cited by:

  1. Lorenzo Cappellari & Antonio di Paolo, 2015. "“Bilingual Schooling and Earnings: Evidence from a Language-in-Education reform”," AQR Working Papers 201511, University of Barcelona, Regional Quantitative Analysis Group, revised Oct 2015.
  2. Paola Naddeo, 2015. "The Wage Effects Of Fixed-Term Contracts," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - Italian Review of Economics, Demography and Statistics, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 69(4), pages 63-72, October-D.
  3. 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.
  4. 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.
  5. 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.
  6. Raffaela Giordano & Manuel Coutinho Pereira & Domenico Depalo & Bruno Eugène & Evangelia Papapetrou & Javier J. Pérez & Lukas Reiss & Mojca Roter, 2014. "The Public Sector Pay Gap in a Selection of Euro Area Countries in the Pre-crisis Period," Hacienda Pública Española, IEF, vol. 214(3), pages 11-34, September.

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