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Private-public sector employment choice and wage differential in Palestine:a gender perspective

  • Daoud, Yousef
  • Shanti, Ruba
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    This paper investigates employment sector choice for Palestinian men and women, the paper analyzes wage differential by gender and sector. The paper utilizes Palestine Central Bureau of Statistics (PCBS) Labor Force Surveys for the years 1999, 2001, 2007, and 2010. Although returns to education by gender has been analyzed before, this paper is the first to analyze wage differential and sector choice by gender. The results indicate that there are stark differences by gender from the view point of sector choice, returns to education, and decomposition of sector and gender wage differentials. Low returns to education tend to diminish the importance of the endowment effect in explaining the sector and gender wage gaps. The Oaxaca-Blinder decomposition of the gender wage differential shows higher predicted log hourly wages for females than for males for all years in the public sector, for the private and “other” sectors, the results are mixed. The sector wage gap reflects a higher predicted log hourly wage in favor of public and “other” compared to private; this result is not surprising given that more lower educational levels are found to be in the private sector than the remaining sectors.

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    File URL: http://mpra.ub.uni-muenchen.de/39782/1/MPRA_paper_39782.pdf
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    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 39782.

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    Date of creation: 2011
    Date of revision: 2012
    Handle: RePEc:pra:mprapa:39782
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    1. Tansel, Aysit, 2004. "Public-Private Employment Choice, Wage Differentials and Gender in Turkey," IZA Discussion Papers 1262, Institute for the Study of Labor (IZA).
    2. Holmlund, Bertil, 1993. "Wage setting in private and public sectors in a model with endogenous government behavior," European Journal of Political Economy, Elsevier, vol. 9(2), pages 149-162, May.
    3. Morley Gunderson, 1979. "Earnings Differentials between the Public and Private Sectors," Canadian Journal of Economics, Canadian Economics Association, vol. 12(2), pages 228-42, May.
    4. François Bourguignon & Martin Fournier & Marc Gurgand, 2002. "Selection Bias Correction Based on the Multinomial Logit Model," Working Papers 2002-04, Centre de Recherche en Economie et Statistique.
    5. Borjas, George J, 1980. "Wage Determination in the Federal Government: The Role of Constituents and Bureaucrats," Journal of Political Economy, University of Chicago Press, vol. 88(6), pages 1110-47, December.
    6. Adamchik, Vera A. & Bedi, Arjun S., 2000. "Wage differentials between the public and the private sectors: evidence from an economy in transition," Labour Economics, Elsevier, vol. 7(2), pages 203-224, March.
    7. Falaris, Evangelos M., 2004. "Private and public sector wages in Bulgaria," Journal of Comparative Economics, Elsevier, vol. 32(1), pages 56-72, March.
    8. Francis Vella, 1998. "Estimating Models with Sample Selection Bias: A Survey," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 127-169.
    9. Terrell, Katherine, 1993. "Public-private wage differentials in Haiti Do public servants earn a rent?," Journal of Development Economics, Elsevier, vol. 42(2), pages 293-314, December.
    10. Shoshana Neuman & Ronald Oaxaca, 2004. "Wage Decompositions with Selectivity-Corrected Wage Equations: A Methodological Note," Journal of Economic Inequality, Springer, vol. 2(1), pages 3-10, April.
    11. Ben Jann, 2008. "The Blinder–Oaxaca decomposition for linear regression models," Stata Journal, StataCorp LP, vol. 8(4), pages 453-479, December.
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