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Public versus Private Sector Wage Gap in Egypt: Evidence from Quantile Regression on Panel Data

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  • Tansel, Aysit
  • Keskin, Halil Ibrahim
  • Ozdemir, Zeynel Abidin

Abstract

This paper considers the public and private sector wage earners in Egypt and examines their wage distribution during 1998-2012 using Egyptian Labor Market Panel Survey. We estimate the public-private sector wage gap with Mincer wage equations both at the mean and at different quantiles of the wage distribution. In this process we take into account observable and unobservable characteristics of the individuals using the panel feature of the data with a fixed effects model. We address sector of employment selection issue for both males and females. We find that there is very little evidence of sample selection in our data. Therefore, we present both the selection corrected results and the results with no selection correction. We find a persistent public sector wage penalty for males and public sector wage premium for females in the face of extensive sensitivity checks. They are larger when unobserved heterogeneity is taken into account for males but insignificant for females. They are similar across the quantiles for males but, smaller at the top than at the bottom of the conditional wage distribution for females. We further examine the public sector wage gap over time and in different sub-groups according to age and education. The public sector wage penalty for males has decreased recently over time and is larger for the better educated and younger. We also find substantial regional differences in public sector wage gap for males. ****** Please cite the published version: Aysit Tansel, Halil I. Keskin and Zeynel Abidin Ozdemir (2020), "Public-Private Sector Wage Gap by Gender in Egypt: Evidence from Quantile Regression on Panel Data, 1998-2018", World Development, vol. 135: November 2020. https://doi.org/10.1016/j.worlddev.2020.105060 ******

Suggested Citation

  • Tansel, Aysit & Keskin, Halil Ibrahim & Ozdemir, Zeynel Abidin, 2018. "Public versus Private Sector Wage Gap in Egypt: Evidence from Quantile Regression on Panel Data," GLO Discussion Paper Series 260, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:260
    Note: Please cite the published version: Aysit Tansel, Halil I. Keskin and Zeynel Abidin Ozdemir (2020), "Public-Private Sector Wage Gap by Gender in Egypt: Evidence from Quantile Regression on Panel Data, 1998-2018", World Development, vol. 135: November 2020. https://doi.org/10.1016/j.worlddev.2020.105060
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    Cited by:

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    2. Aysit Tansel & Halil Ibrahim Keskin & Zeynel Abidin Ozdemir, 2020. "Is there an informal employment wage penalty in Egypt? Evidence from quantile regression on panel data," Empirical Economics, Springer, vol. 58(6), pages 2949-2979, June.
    3. Tansel, Aysit & Keskin, Halil Ibrahim & Ozdemir, Zeynel Abidin, 2020. "Public-private sector wage gap by gender in Egypt: Evidence from quantile regression on panel data, 1998–2018," World Development, Elsevier, vol. 135(C).
    4. El-Haddad, Amirah, 2020. "Redefining the social contract in the wake of the Arab Spring: The experiences of Egypt, Morocco and Tunisia," World Development, Elsevier, vol. 127(C).
    5. Jean-Michel Sahut & Rey Dang & L'Hocine Houanti & Nhu Tuyen Le, 2020. "Women on corporate boards, stated-owned enterprises and firm performance: Evidence from Vietnam and quantile regression," Economics Bulletin, AccessEcon, vol. 40(3), pages 2538-2549.

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    More about this item

    Keywords

    Public Sector; Private Sector; Wage Gap; Gender; Sample Selection; Quantile Regression; Panel Data; Egypt;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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