Public-sector employment, wages and education decisions

Chassamboulli, Andri; Gomes, Pedro

doi:10.1016/j.labeco.2023.102345

Cited by 11 publications

(3 citation statements)

References 34 publications

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“…It is pertinent to mention that wages are determined keeping in view political and budgetary considerations, and market forces can play a very limited role (Depalo et al, 2015). In a very recent study, Chassamboulli & Gomes (2023) concluded that owing to high wages in the public sector, many unemployed workers queue for public-sector jobs. On the other hand, if wages are low in the public sector then the government faces recruitment problems.…”

Section: Public-private Wage Differentials: Evidence From Pakistan 1 ...mentioning

confidence: 99%

Public-Private Wage Differentials: Evidence from Pakistan

Akram

2022

LJE

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Compensation structures of public sector employees have significant implications for public service delivery and employment. If public sector employees get relatively lower pay, then the government can face difficulties in retaining trained and qualified workers. However, if public sector employees receive higher salaries it is possible that younger people may prefer to join the public sector. If this is accompanied by limited job absorption capacity in the public sector, it is possible for there to be substantial unemployment. This study has analysed the wage differentials by using the data from the Pakistan Labour Force Survey 2020-21. Blinder-Oaxaca decomposition suggests that at the executive level, public sector workers are facing wage penalties, while other occupational groups in the public sector are enjoying wage premiums. The highest wage premiums are for clerical staff followed by unskilled workers, services, technician, professionals and agricultural workers

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Section: Public-private Wage Differentials: Evidence From Pakistan 1 ...mentioning

confidence: 99%

Public-Private Wage Differentials: Evidence from Pakistan

Akram

2022

LJE

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“…Governments are under pressure to serve as model employers and refrain from paying low wages to their less skilled workforce (Melly, 2005; Morgan & Allington, 2002). Additionally, another body of research emphasizes that wage‐setting environments and labour market structures substantially differ between the public and private sectors (Campos et al, 2017; Chassamboulli & Gomes, 2023; Dickson et al, 2014). For instance, studies have demonstrated that union density and collective bargaining tend to be higher in the public sector compared with the private sector (Antonczyk et al, 2010; Card, 2001; Card et al, 2017; Card et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

Public–private wage differentials in Tunisia: Consistency and decomposition

Amara,

Khallouli,

Zidi

2024

Labour

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In this paper, we estimate and decompose the public–private wage differentials for urban areas, using the 2012 Tunisia urban youth survey. Oaxaca decomposition results suggest that, on average, public sector workers earn more than their private counterparts. Additionally, the results indicate that a substantial part of the conditional gap in urban areas can be attributed to observed characteristics. Human capital, particularly education, are the main reason behind the observed log‐wage advantages. Using unconditional quantile decomposition, our findings reveal that, for urban areas, the discrimination effect becomes more pronounced at the upper quantiles of the wage distribution. Separate analyses by gender and educational levels show that male workers across both sectors receive higher compensation than their female counterparts, with a more pronounced gender gap in private sector. Less educated workers are compensated much more in the public sector than in the private sector, while the wage differential for skilled workers decreases rapidly through the distribution.

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“…Gomes (2018) examines the effects of a public-sector wage reform that eliminates the wage premium for all types of public-sector workers. Chassamboulli and Gomes (2019) set up a search and matching model with a private and a public sector to study the effects of wage policies in the public sector on unemployment and education decisions.…”

Section: Introductionmentioning

confidence: 99%