Public–private wage differentials in euro-area countries: evidence from quantile decomposition analysis

Public-Private Sector Wage Differentials by Type oif Contract: Evidence from Spain

“…Hospido and Moral (2013) obtain similar results using a different data source, the Muestra Continua de Vidas Laborales. García-Pérez and Jimeno (2005), Depalo et al (2013) and Hospido and Moral (2013) also estimate quantile regressions, obtaining similar results to those obtained for other countries, namely a lower wage premium in the upper part of the wage distribution. When differentiating the sample by skill level, Hospido and Moral (2013) in fact obtain a negative wage premium for high-skilled public sector workers located in the upper part of the wage distribution.…”

“…The existence, in general, of a lower wage dispersion in the public sector implies, in turn, that the analysis of the average wage differential provides an incomplete view of the different processes of wage determination in the public and private sectors. This has led several authors to examine inter-sector wage differentials across the wage distribution using decomposition techniques of differences in wage distributions (Poterba and Rueben, 1994, Melly, 2005a, Christopoulou and Monastiriotis, 2013, Cai and Liu, 2011, Lucifora and Meurs, 2006and Depalo et al, 2013. Their results largely coincide, confirming that, in general, the role of the characteristics varies at specific points in the wage distribution, so that the public sector wage premium is greater in the lower part of the distribution and becomes smaller in the higher quantiles, so as to at a given point the premium usually becomes negative.…”

“…Those former studies estimate a Mincerian wage equation, using a dummy variable identifying public sector workers, and reveal the presence of a public sector wage premium. Despite their limitations, the same methodology has been applied in many subsequent studies in the field and these, with few exceptions, estimate a positive wage premium for public sector workers, a premium that is comparatively higher for women and in less developed countries (Giordano et al, 2011 andDepalo et al, 2013). Following the methodology proposed by Oaxaca andBlinder (Oaxaca, 1973 andBlinder, 1973), an alternative line of analysis has subsequently based its analysis on the de-110 RAÒL RAMOS, ESTEBAN SANROMÂ AND HIPÏLITO SIMÏN composition of the wage gap between sectors into the effects attributable to differences in characteristics and in the returns to these characteristics (the latter component reflecting the wage premium paid by the public sector to workers with the same productivity-related characteristics as those of workers in the private sector).…”

“…Compared to the vast body of international literature in this field, evidence of the public-private sector wage gap in Spain is comparatively small and, with few exceptions, is not very recent. Thus, Lassibille (1998), Albert et al (1999) and Jimeno (2005 and have estimated endogenous regression models for various years between 1990years between and 2001years between , and Giordano et al (2011, Depalo et al (2013) andDe Castro et al (2013) have included Spain in their comparative analyses of various European countries (in the latter case using the European Structure of Earnings Survey). There is a general consensus in their estimates of a high public sector wage premium, always higher for women.…”

Understanding What Has Been Happening to the Public‐Sector Pay Premium in Great Britain: A Distributional Approach Based on the Labour Force Survey

“…Depalo et al . (), for example, use this method to estimate public/private‐sector wage differences in Euro‐area countries. The approach of Firpo et al .…”