Public-Private Sector Wage Differentials by Type of Contract: Evidence from Spain

34 Pages Posted: 3 May 2014

See all articles by Raul Ramos

Raul Ramos

University of Barcelona - AQR; IZA Institute of Labor Economics

Esteban Sanroma

University of Barcelona

Hipolito Simon

Universidad de Alicante

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Abstract

The article examines public-private sector wage differentials in Spain using microdata from the Structure of Earnings Survey (Encuesta de Estructura Salarial). When applying various decomposition techniques, we find that it is important to distinguish by gender and type of contract. Our results also highlight the presence of a positive wage premium for public sector workers that can be partially explained by their better endowment of characteristics, in particular by the characteristics of the establishment where they work. The wage premium is greater for female and fixed-term employees and falls across the wage distribution, being negative for more highly skilled workers.

Keywords: public-private sector wage gap, wage distribution, matched employer-employee data, decomposition methods

JEL Classification: C2, E3, J3, J4

Suggested Citation

Ramos, Raul and Sanroma, Esteban and Simon, Hipolito, Public-Private Sector Wage Differentials by Type of Contract: Evidence from Spain. IZA Discussion Paper No. 8158, Available at SSRN: https://ssrn.com/abstract=2432442 or http://dx.doi.org/10.2139/ssrn.2432442

Raul Ramos (Contact Author)

University of Barcelona - AQR ( email )

Dpt. Econometrics, Statistics and Spanish Economy
Avda. Diagonal 690
Barcelona, Barcelona 08034
Spain

HOME PAGE: http://www.raulramos.cat

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Esteban Sanroma

University of Barcelona ( email )

Gran Via de les Corts Catalanes, 585
Barcelona, 08007
Spain

Hipolito Simon

Universidad de Alicante ( email )

Campus de San Vicente
Carretera San Vicente del Raspeig
San Vicente del Raspeig, Alicante 03690
Spain

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