TY - GEN
T1 - Are We Better Off Working in the Public Sector?
AU - Wang, Yi
AU - Zhou, Peng
N1 - Publisher Copyright:
© 2017, Springer International Publishing AG.
PY - 2017/6/8
Y1 - 2017/6/8
N2 - This paper critically reviews the literature on public sector wage premium, especially in the developed countries like the USA and the UK. It is found that the pay advantage is persistent over the latest half century, but it started to decline since the late-1990s; in particular, females tend to enjoy a higher wage premium than males. A key technical problem of estimating wage premium is selection bias, because the sector choice is endogenously determined by individual characteristics and job attributes. The main prevailing methods in the current literature are categorised into four main types, and a sample dataset from the Labour Force Survey (UK) in the latest decade is used to apply and compare these methods. The findings suggest that Blinder–Oaxaca and OLS seem to underestimate the wage premium by 2 %, compared to propensity score matching method.
AB - This paper critically reviews the literature on public sector wage premium, especially in the developed countries like the USA and the UK. It is found that the pay advantage is persistent over the latest half century, but it started to decline since the late-1990s; in particular, females tend to enjoy a higher wage premium than males. A key technical problem of estimating wage premium is selection bias, because the sector choice is endogenously determined by individual characteristics and job attributes. The main prevailing methods in the current literature are categorised into four main types, and a sample dataset from the Labour Force Survey (UK) in the latest decade is used to apply and compare these methods. The findings suggest that Blinder–Oaxaca and OLS seem to underestimate the wage premium by 2 %, compared to propensity score matching method.
KW - Decomposition
KW - Propensity score matching
KW - Public sector wage premium
KW - Treatment effect
UR - http://www.scopus.com/inward/record.url?scp=85125669754&partnerID=8YFLogxK
U2 - 10.1007/978-3-319-48454-9_28
DO - 10.1007/978-3-319-48454-9_28
M3 - Conference contribution
AN - SCOPUS:85125669754
SN - 9783319484532
T3 - Springer Proceedings in Business and Economics
SP - 379
EP - 409
BT - Advances in Applied Economic Research - Proceedings of the 2016 International Conference on Applied Economics ICOAE
A2 - Tsounis, Nicholas
A2 - Vlachvei, Aspasia
PB - Springer Science and Business Media B.V.
T2 - International Conference on Applied Economics, ICOAE 2016
Y2 - 7 July 2016 through 9 July 2016
ER -