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Public-private sector wage differentials by type of contract: evidence from Spain

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  • Raul Ramos

    () (AQR-IREA, Universitat de Barcelona)

  • Esteban Sanromá

    () (IEB, Universitat de Barcelona)

  • Hipólito Simón

    () (IEI, Universidad de Alicante, IEB)

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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  • Raul Ramos & Esteban Sanromá & Hipólito Simón, 2014. "Public-private sector wage differentials by type of contract: evidence from Spain," Working Papers XREAP2014-08, Xarxa de Referència en Economia Aplicada (XREAP), revised Oct 2014.
  • Handle: RePEc:xrp:wpaper:xreap2014-08
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    Keywords

    Public-private sector wage gap; wage distribution; matched employer-employee data; decomposition methods.;

    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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