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Examining Equality between Public- and Private-Sector Wage Distributions

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  • Keith A. Bender

    (Department of Economics, University of Wisconsin--Milwaukee, PO Box 413, Milwaukee, WI 53201 and Research Fellow, Centre for European Labour Market Research, University of Aberdeen, Scotland.)

Abstract

Most comparability studies examine average pay differences, but this article explores differences in the distribution of public- and private-sector wages. Applying a new type of decomposition method, the results indicate that the difference in average wages is only a small part of wage incomparability, whereas differences in the variance of the differential are a much more important factor explaining incomparability. Further results find that differences in wage structure and unobservable factors determining wages have distinct effects in different parts of the wage distribution. Copyright 2003, Oxford University Press.

Suggested Citation

  • 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.
    • Handle: RePEc:oup:ecinqu:v:41:y:2003:i:1:p:62-79
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