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The public-private sector earnings gap; in Australia: a quantile regression approach

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  • Elisa Birch

    (University of Western Australia)

Abstract

This paper investigates the public-private sector earnings gap for Australian men. It finds that the average earnings of men working in the public sector are larger than the earnings of men employed in the private sector. The difference in the earnings of public and private sector workers is slightly larger for those working in the federal government sector than for those working in the state/local government sector. Using a quantile regression approach, the paper also finds that the wage premium for public sector employment varies substantially along the earnings distribution, with low-paid workers having the largest wage advantage from employment in the public sector. Employment in the private sector has a negative impact on the wages of high-paid workers.

Suggested Citation

  • Elisa Birch, 2006. "The public-private sector earnings gap; in Australia: a quantile regression approach," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 9(2), pages 99-123, June.
    • Handle: RePEc:ozl:journl:v:9:y:2006:i:2:p:99-123
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    2. Peter Siminski, 2013. "Are low-skill public sector workers really overpaid? A quasi-differenced panel data analysis," Applied Economics, Taylor & Francis Journals, vol. 45(14), pages 1915-1929, May.
    3. Ashwin Madhou & Imad Moosa & Vikash Ramiah, 2015. "Working Capital as a Determinant of Corporate Profitability," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 18(04), pages 1-17, December.
    4. Jelena Lausev, 2014. "WHAT HAS 20 YEARS OF PUBLIC–PRIVATE PAY GAP LITERATURE TOLD US? EASTERN EUROPEAN TRANSITIONING vs. DEVELOPED ECONOMIES," Journal of Economic Surveys, Wiley Blackwell, vol. 28(3), pages 516-550, July.
    5. Ayça Akarçay Gürbüz & Sezgin Polat, 2016. "Public--private wage differentials in Turkey: public policy or market dynamics?," International Review of Applied Economics, Taylor & Francis Journals, vol. 30(3), pages 326-356, May.
    6. Kostas Mavromaras & Stephane Mahuteau & Kostas Mavromaras & Sue Richardson & Rong Zhu, 2017. "Public–Private Sector Wage Differentials in Australia," The Economic Record, The Economic Society of Australia, vol. 93, pages 105-121, June.
    7. Rahman, Mustafizur & Al-Hasan, Md., 2018. "Why is the relative preference for government jobs on the rise in Bangladesh? Evidence from labour force surveys," MPRA Paper 90133, University Library of Munich, Germany.
    8. Cristina Pita & Ramón J. Torregrosa, 2023. "The Education-Job Satisfaction Paradox in the Public Sector," Public Organization Review, Springer, vol. 23(4), pages 1717-1735, December.
    9. Tansel, Aysit & Keskin, Halil Ibrahim & Ozdemir, Zeynel Abidin, 2020. "Public-private sector wage gap by gender in Egypt: Evidence from quantile regression on panel data, 1998–2018," World Development, Elsevier, vol. 135(C).
    10. Barry R. Chiswick & Paul W. Miller, 2015. "Negative and Positive Assimilation by Prices and by Quantities," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 18(1), pages 5-28.
    11. Tansel, Aysit & Keskin, Halil Ibrahim & Ozdemir, Zeynel Abidin, 2008. "Public versus Private Sector Wage Gap in Egypt: Evidence from Quantile Regression on Panel Data," MPRA Paper 89540, University Library of Munich, Germany.

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    More about this item

    Keywords

    Human Capital; Skills; Occupational Choice; Labor Productivity (Formal Training Programs; On-the-Job Training); Wage Level and Structure; Wage Differentials by Skill; Training; Occupation; etc; Public Sector Labor Markets;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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