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Are we better off working in the public sector?

Wang, Yi and Zhou, Peng ORCID: 2017. Are we better off working in the public sector? Presented at: 2016 International Conference on Applied Economics (ICOAE), Nicosia, Cyprus, 7-9 July 2016. Published in: Tsounis, Nicholas and Vlachvei, Aspasia eds. Advances in Applied Economic Research. Springer Proceedings in Business and Economics Cham, Switzerland: Springer International Publishing, pp. 379-409. 10.1007/978-3-319-48454-9_28

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This paper critically reviews the literature on public sector wage premium, especially in the developed countries like the USA and the UK. It is found that the pay advantage is persistent over the latest half century, but it started to decline since the late-1990s; in particular, females tend to enjoy a higher wage premium than males. A key technical problem of estimating wage premium is selection bias, because the sector choice is endogenously determined by individual characteristics and job attributes. The main prevailing methods in the current literature are categorised into four main types, and a sample dataset from the Labour Force Survey (UK) in the latest decade is used to apply and compare these methods. The findings suggest that Blinder–Oaxaca and OLS seem to underestimate the wage premium by 2 %, compared to propensity score matching method.

Item Type: Conference or Workshop Item (Paper)
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Publisher: Springer International Publishing
ISBN: 9783319484532
Date of First Compliant Deposit: 8 October 2019
Last Modified: 23 Nov 2022 13:48

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