Public-Private Sector Wage Differential in Estonia: Evidence from Quantile Regression

University of Tartu Faculty of Economics and Business Administration Working Paper No. 39

43 Pages Posted: 12 Dec 2005

Date Written: November 29, 2005

Abstract

In this paper the wage differential between the public and private sector is estimated by means of the quantile regression method, which will provide a more complex picture of the distribution of the public-private sector wage differential than can be obtained with ordinary mean regression. The evidence from quantile regression shows that there is a negative wage differential for higher quantiles, but no significant difference in wages for lower quantiles. The other main results are that women benefit more from working in the public sector than men, and that employees with higher educational levels benefit more from working in the public sector than low-educated workers.

Keywords: Public sector, wage differential, quantile regression

JEL Classification: J38, J31, C29

Suggested Citation

Leping, Kristjan-Olari, Public-Private Sector Wage Differential in Estonia: Evidence from Quantile Regression (November 29, 2005). University of Tartu Faculty of Economics and Business Administration Working Paper No. 39. Available at SSRN: https://ssrn.com/abstract=868487 or http://dx.doi.org/10.2139/ssrn.868487

Kristjan-Olari Leping (Contact Author)

University of Tartu

Narva Rd. 4-A214
Tartu, 51009
Estonia

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