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

47 Pages Posted: 25 Jun 2015

See all articles by Rhea Molato

Rhea Molato

University of the Philippines, Diliman - School of Economics

Date Written: May 7, 2015

Abstract

This paper estimates the wage differential 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.

Keywords: occupational wage differential, salaries, compensation, wage gap, government employees, civil service, public sector, public employee

JEL Classification: J31, M52, J45

Suggested Citation

Molato, Rhea, Public-Private Wage Differentials and the Quality of Government Workers in the Philippines (May 7, 2015). Working Paper of the Max Planck Institute for Tax Law and Public Finance No. 2015-6, Available at SSRN: https://ssrn.com/abstract=2616204 or http://dx.doi.org/10.2139/ssrn.2616204

Rhea Molato (Contact Author)

University of the Philippines, Diliman - School of Economics ( email )

Encarnacion Hall
F. M. Guerrero corner S. Osmena Sts
U.P. Diliman, Quezon City
Philippines

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