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
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: Suggested Citation