Public-Private Sector Wage Differentials in Germany: Evidence from Quantile Regression
Journal
Empirical Economics
ISSN
0377-7332
ISSN-Digital
1435-8921
Type
journal article
Date Issued
2005-09-01
Author(s)
Melly, Blaise
Abstract
This paper measures and decomposes the differences in earnings distributions between public sector and private sector employees in Germany for the years 1984-2000. Two decomposition methods are used: Oaxaca decomposition using quantile regression and the decomposition proposed by Machado and Mata (2002). Both indicate that the public sector wage premium is highest at the lower end of the wage distribution and then decreases monotonically as we move up the wage distribution. At the mean or the median, wages are lower in the public sector for men but higher for women. Separate analyses by work experience and educational groups reveal that the most experienced employees and those with basic schooling do best in the public sector. All these results are stable over the 80s and 90s.
Language
English
Keywords
public-private sector wage differential
quantile regression
Germany
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Physica-Verl.
Publisher place
Heidelberg
Volume
30
Number
2
Start page
505
End page
520
Pages
16
Subject(s)
Division(s)
Eprints ID
15758
File(s)![Thumbnail Image]()
Name
2003.pdf
Size
313.54 KB
Format
Adobe PDF
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