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An Analysis of Public- and Private-Sector Wages Allowing for Endogenous Choices of Both Government and Union Status

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  • Gyourko, Joseph
  • Tracy, Joseph

Abstract

A general selection model is estimated in which workers select across four labor markets-private/nonunion, privat e/union, public/nonunion, and public/union. Evidence is found of posi tive selection bias in the private/nonunion sector and of negative se lection bias in the public/union sector. Union wage differentials in the public and private sectors as well as public/private wage differe ntials are contrasted. The authors discuss when it is appropriate to use each type of differential. Copyright 1988 by University of Chicago Press.

Suggested Citation

  • Gyourko, Joseph & Tracy, Joseph, 1988. "An Analysis of Public- and Private-Sector Wages Allowing for Endogenous Choices of Both Government and Union Status," Journal of Labor Economics, University of Chicago Press, vol. 6(2), pages 229-253, April.
    • Handle: RePEc:ucp:jlabec:v:6:y:1988:i:2:p:229-53
    DOI: 10.1086/298182
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    References listed on IDEAS

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