Understanding the public-private sector wage gap in Germany: New evidence from a Fixed Effects quantile Approach∗

The Machado-Mata decomposition building on quantile regression has been extensively analyzed in the literature focusing on gender wage inequality. In this study, we generalize the Machado-Mata decomposition to the expectile regression framework, which, to the best of our knowledge, has never been applied in this strand of the literature. In contrast, in recent years, expectiles have gained increasing attention in other contexts as an alternative to traditional quantiles, providing useful statistical and computational properties. We flexibly deal with high-dimensional problems by employing the Least Absolute Shrinkage and Selection Operator. The empirical analysis focuses on the gender pay gap in Germany and Italy. We find that depending on the estimation approach (i.e. expectile or quantile regression) the results substantially differ along some regions of the wage distribution, whereas they are similar for others. From a policy perspective, this finding is important as it affects conclusions about glass ceiling and sticky floors.

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Gender wage inequality: new evidence from penalized expectile regression

Bonaccolto-Töpfer

Bonaccolto

2023

J Econ Inequal

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Sectoral Wage Differentials in Bangladesh: A Comparison Between the Government and Other Ownerships

Rahman,

Kim

2023

International Economic Journal

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Public–private sector wage gaps in Australia: Extent, trends and gender

Birch,

Preston

2024

Journal of Industrial Relations

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Using panel data from the Household, Income and Labour Dynamics in Australia survey, this paper analyses the wage gap between the public and private sectors in Australia from 2001 to 2022. The analysis is conducted at both the national and state levels. We found that, since 2014, the public-sector wage premium (nationally) has increased for women but decreased for men, with women's outcomes driving current trends. Additionally, the public-sector wage premium varies significantly across states, indicating that state-level wage-setting forces are more influential than national ones. Our trend analysis reveals that the premium is neither consistently procyclical nor countercyclical. Furthermore, quantile analysis shows that the premium fluctuates across the wage distribution, though not in a uniform pattern over time.

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Understanding the public-private sector wage gap in Germany: New evidence from a Fixed Effects quantile Approach∗

Cited by 6 publications

References 51 publications

Gender wage inequality: new evidence from penalized expectile regression

Gender wage inequality: new evidence from penalized expectile regression

Sectoral Wage Differentials in Bangladesh: A Comparison Between the Government and Other Ownerships

Public–private sector wage gaps in Australia: Extent, trends and gender

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