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

Author Info

  • 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
Date of revision:
Publication status: forthcoming in: Hacienda Pública Española/Review of Public Economics, 2014
Handle: RePEc:iza:izadps:dp8158
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Keywords: matched employer-employee data; wage distribution; public-private sector wage gap; decomposition methods;

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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. Hospido, Laura & Moral-Benito, Enrique, 2014. "The Public Sector Wage Premium in Spain: Evidence from Longitudinal Administrative Data," IZA Discussion Papers 8315, Institute for the Study of Labor (IZA).

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