“…These study findings are not startling, since government (employment) sector in Namibia constitutes of employees who are more skilled and more educated at non-entry level job posts in order to meet international standards and be comparable to other nations. This finding agrees with Cardozo & Cunha (2019), who concluded that public (government) sector workers were paid higher compared to private sector workers.…”
An Empirical Investigation of the Determinants ofWage Differentials in Namibia
IntroductionWage differentials or wage inequalities can be defined as the significant disparity in the distribution of income between individuals (Howard & Carter, n.d). Generally, wages tend to differ among workers and even among those who do similar jobs. These differentials are informed by several contributing factors such as the worker's sex, ethnicity, education, occupation type and region of residence (
“…These study findings are not startling, since government (employment) sector in Namibia constitutes of employees who are more skilled and more educated at non-entry level job posts in order to meet international standards and be comparable to other nations. This finding agrees with Cardozo & Cunha (2019), who concluded that public (government) sector workers were paid higher compared to private sector workers.…”
An Empirical Investigation of the Determinants ofWage Differentials in Namibia
IntroductionWage differentials or wage inequalities can be defined as the significant disparity in the distribution of income between individuals (Howard & Carter, n.d). Generally, wages tend to differ among workers and even among those who do similar jobs. These differentials are informed by several contributing factors such as the worker's sex, ethnicity, education, occupation type and region of residence (
“…The issue of the wage gap between the public and private sectors is a hot topic for both developed and emerging market economies (Cardozo and Cunha 2019;Gindling et al 2020;Ma and Li 2022;Maria and Christofides 2020;Sławinska 2020). Numerous studies have argued that because the public sector (e.g., state-owned enterprises [SOEs]) is usually supported by the government and can easily become a monopoly sector that may obtain a higher monopoly or political rent (Iwasaki et al 2022;Lin et al 2020;Vishny 1994, 1997), the public sector can set a higher wage level than that in the private sector, which leads to a wage gap between the two sectors.…”
Section: Introductionmentioning
confidence: 99%
“…Many countries have aimed to reduce the wage gap between the public and private sectors, yet it persists worldwide (Cardozo and Cunha 2019;Gindling et al 2020;Ma and Li 2022;Maria and Christofides 2020;Sławinska 2020). Using wage decomposition methods, Chen et al (2005), Zhang and Xue (2008), Ye et al (2011), Demurger et al (2012), Zhang (2012), Ma (2018), and Ma and Li (2022) found that differences in workers' endowment (e.g., education) and wage-setting systems (e.g., return to education or work experience) generate a wage gap between the public and private sectors.…”
As trade unions are active in corporations worldwide, the union effects on the labor market have attracted global attention. However, empirical evidence is scarce regarding how the trade unions’ effects on the wage gaps differ between the public and private sectors. Using the six-wave national longitudinal survey data of 2010-2020, this study estimates the effects of union membership on the wage gap between public and private sectors in China. The results show that there is a positive union wage premiums in both sectors, and the effect is greater for the private sector. The union coverage differences widen the wage gap between the public and private sectors; conversely, the union wage premium difference reduces the wage gap. The results indicate that a policy expanding union coverage in the private sector may effectively reduce the wage gap between the two sectors.
JEL classification: J51, J53, J31, P21, P31, P41
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