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The influence of privatization on occupational wages

Author

Listed:
  • James Peoples

    (The University of Wisconsin-Milwaukee)

  • Bin Wang

    (St. Edward''s University)

Abstract

This paper uses individual worker and municipal information to examine privatization's influence on the wages of thirteen occupations. Findings reveal that the group of relatively low-skill content occupations comprising bus drivers and construction laborers receive a wage premium in the absence of privatization, and privatization is associated with an erosion of this premium. In contrast, the group of relatively high-skill content occupations comprising physicians and lawyers receive a non-trivial public sector discount in the absence of privatization and only the wage differential of physicians erodes with increased privatization. However, physician's public sector discount does not erode when estimating privatization's influence on this occupation's weekly earnings.

Suggested Citation

  • James Peoples & Bin Wang, 2009. "The influence of privatization on occupational wages," Economics Bulletin, AccessEcon, vol. 29(3), pages 1940-1946.
    • Handle: RePEc:ebl:ecbull:eb-09-00238
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2009/Volume29/EB-09-V29-I3-P42.pdf
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    References listed on IDEAS

    as
    1. Gary A. Hoover & James Peoples, 2003. "Privatization of Refuse Removal and Labor Costs ," Journal of Labor Research, Transaction Publishers, vol. 24(2), pages 294-305, April.
    2. Peoples, James & Talley, Wayne K. & Wang, Bin, 2008. "U.S. public transit earnings, employment and privatization," Research in Transportation Economics, Elsevier, vol. 23(1), pages 99-106, January.
    3. Keith A. Bender, 2003. "Examining Equality between Public- and Private-Sector Wage Distributions," Economic Inquiry, Western Economic Association International, vol. 41(1), pages 62-79, January.
    4. Keith A. Bender, 1998. "The Central Government‐Private Sector Wage Differential," Journal of Economic Surveys, Wiley Blackwell, vol. 12(2), pages 177-220, April.
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    More about this item

    Keywords

    privatization; occupational wage; wage differential;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • L0 - Industrial Organization - - General

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