“…Second, the characteristics of the public sector workers may also be different. To estimate these counterfactual wages, we resorted to the decomposition proposed by Juhn, Murphy, and Pierce (JMP), which allowed us to isolate the differential effects of coefficients (prices), observed characteristics (quantities) and residual effects using linear regressions (JUHN, MURPHY and PIERCE, 1993). First, we estimated a wage equation for the reference group, the public sector workers, and an equation for the equivalent group, the private sector workers.…”