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Public-Private Wage Differentials and the Quality of Government Workers in the Philippines

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  • Rhea Molato

Abstract

This paper estimates the wage di¤erential between public sector employees and their private sector counterparts in a developing country, the Philippines. It finds that public sector workers in this country are receiving an hourly wage premium over private sector employees of similar background. This wage premium is associated with a higher degree of pro-social behaviour among government workers relative to private sector workers. However, government employees are found to be working fewer hours than their counterparts in the private sector. College graduates are more likely to work in the government than non-college graduates but among college graduates, those with more specialized skills tend to be employed in the private sector rather than the public sector.

Suggested Citation

  • Rhea Molato, 2015. "Public-Private Wage Differentials and the Quality of Government Workers in the Philippines," Working Papers tax-mpg-rps-2015-06, Max Planck Institute for Tax Law and Public Finance.
    • Handle: RePEc:mpi:wpaper:tax-mpg-rps-2015-06
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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