Public-private sector wage differentials and returns to education in Djibouti
Do public sector workers earn a wage premium in Djibouti and are the returns to education different across the sectors? The authors estimate private and public sector wage earnings using 1996 household survey data, while controlling for selectivity using Heckman's two stage approach. They find that Djiboutian public sector employees earn a wage premium, independent of their personal attributes and human capital endowments, and are more likely to be males and have parents in the public sector. Workers in the public sector earn higher private rates of return to education than do private sector workers with post-secondary schooling. These results raise concerns about current government hiring and wage-setting practices that generate distortions in the labor market and are not efficiently allocating labor and public resources.
|Date of creation:||01 May 2006|
|Date of revision:|
|Contact details of provider:|| Postal: 1818 H Street, N.W., Washington, DC 20433|
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Tansel, Avsit, 2005.
"Public-Private Employment Choice, Wage Differentials, and Gender in Turkey,"
Economic Development and Cultural Change,
University of Chicago Press, vol. 53(2), pages 453-77, January.
- Aysit Tansel, 1999. "Public-Private Employment Choice, Wage Differentials and Gender in Turkey," Working Papers 9913, Economic Research Forum, revised May 1999.
- Tansel, Aysit, 2004. "Public-Private Employment Choice, Wage Differentials and Gender in Turkey," IZA Discussion Papers 1262, Institute for the Study of Labor (IZA).
- Tansel, A., 1999. "Public_Private Employment Choice, Wage Differential and Gender in Turkey," Papers 797, Yale - Economic Growth Center.
- Aysit Tansel, 1999. "Public-Private Employment Choice, Wage Differentials and Gender in Turkey," Working Papers 797, Economic Growth Center, Yale University.
- Psacharopoulos, George, 1993.
"Returns to investment in education : a global update,"
Policy Research Working Paper Series
1067, The World Bank.
- Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September.
- T. Paul Schultz, 2004.
"Evidence of Returns to Schooling in Africa from Household Surveys: Monitoring and Restructuring the Market for Education,"
Journal of African Economies,
Centre for the Study of African Economies (CSAE), vol. 13(02), pages ii95-ii148, December.
- T. Paul Schultz, 2003. "Evidence of Returns to Schooling in Africa from Household Surveys: Monitoring and Restructuring the Market for Education," Working Papers 875, Economic Growth Center, Yale University.
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:3923. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi)
If references are entirely missing, you can add them using this form.