Public–Private Sector Wage Differentials in Australia

17 Pages Posted: 15 Jun 2017

See all articles by Stephane Mahuteau

Stephane Mahuteau

Macquarie University - Economics Department

Kostas Mavromaras

Flinders University

Sue Richardson

Flinders University

Rong Zhu

Flinders University

Multiple version iconThere are 2 versions of this paper

Date Written: June 2017

Abstract

This paper examines public–private sector wage differentials in Australia. After controlling for observed characteristics and individual fixed effects, we show that on average workers in the public sector earn about 5.1 per cent more in hourly wages than those in the private sector. The wage premium is slightly higher for females than males. Using a panel data quantile regression model with fixed effects, we show that the positive wage effects of public sector employment are heterogeneous, with comparatively larger impact at the lower end of the wage distribution than at other parts. We also find evidence of heterogeneity in the public sector wage premiums by qualification, time period, occupation and state/territory.

Suggested Citation

Mahuteau, Stephane and Mavromaras, Kostas and Richardson, Sue and Zhu, Rong, Public–Private Sector Wage Differentials in Australia (June 2017). Economic Record, Vol. 93, pp. 105-121, 2017, Available at SSRN: https://ssrn.com/abstract=2985796 or http://dx.doi.org/10.1111/1475-4932.12334

Stephane Mahuteau (Contact Author)

Macquarie University - Economics Department ( email )

North Ryde
Sydney, New South Wales 2109
Australia
612 9850 8489 (Phone)
612 9850 6069 (Fax)

HOME PAGE: http://www.econ.mq.edu.au/staff/position/staff_by_position/stephane_mahuteau

Kostas Mavromaras

Flinders University ( email )

GPO Box 2100
Adelaide S.A. 5001, SA 5063
Australia

Sue Richardson

Flinders University ( email )

GPO Box 2100
Adelaide S.A. 5001, SA 5063
Australia

Rong Zhu

Flinders University

GPO Box 2100
Adelaide S.A. 5001, SA 5063
Australia

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