Public–Private Wage Disparities, Employment, and Labor Market Segmentation in Tunisia

Author(s):  
Ines Bouassida ◽  
Abdel-Rahmen El Lahga

The dysfunction of the Tunisian labor market is exacerbated particularly by the segmentation between public and private sector employment. These different segments differ in terms of returns to human capital, social protection and mobility, affecting career development and the wage structure in the economy. In this chapter, we present the patterns of wage distribution in Tunisia across important socioeconomic groups and a detailed analysis of the wage gap between public and private sectors. Our results show particularly that while in the bottom sector of the wage distribution the positive wage gap between public and private sectors is mainly attributable to the composition or characteristics of workers, the wage gap in the upper sector of the distribution is due to returns to characteristics effect. The public-sector wage premium explains the strong preference in public positions.

2005 ◽  
Vol 44 (3) ◽  
pp. 271-306 ◽  
Author(s):  
Asma Hyder ◽  
Barry Reilly

This paper examines the magnitude of public/private wage differentials in Pakistan using data drawn from the 2001-02 Pakistan Labour Force Survey. As in many other countries, public sector workers in Pakistan tend both to have higher average pay and education levels as compared to their private sector counterparts. In addition, the public sector in Pakistan has both a more compressed wage distribution and a smaller gender pay gap than that prevailing in the private sector. Our empirical analysis suggests that about two-fifths of the raw differential in average hourly wages between the two sectors is accounted for by differentials in average characteristics. The estimated public sector mark-up, ceteris paribus, is of the order of 49 percent and is substantial by the standards of developed economies. The quantile regression estimates suggest that the mark-up was found to decline monotonically with movement up the conditional wage distribution. In particular, the premium at the 10th percentile was estimated at 92 percent as compared to a more modest 20 percent at the 90th percentile.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rabeh Morrar ◽  
Fernando Rios-Avila

PurposeThis paper examines the level and structure of the wage inequality between nonrefugee and refugee workers in Palestine and the extent to which such wage gap reflects any marginalization and discrimination against refugees. It also investigates how the disparities in distribution to individual worker characteristics contribute to the wage inequality in Palestine.Design/methodology/approachThe authors use both Oaxaca and Blinder (OB) (Oaxaca, 1973 and Blinder, 1973) and Fortin et al. (2011) unconditional quantile decomposition approaches to measure the size of the wage gap along with the wage distribution and to decompose the wage differences into productivity (i.e. explained or the composition effects) and wage structure effects (i.e. unexplained or discrimination effects).FindingsResults indicate that most of the wage gap between refugees and nonrefugees is attributed to the wage structure effect (possibly explained by discrimination) against refugees in the Palestinian labor market. The wage gap between refugees and nonrefugees is not uniform throughout the wage distribution and supports the “sticky floor effect.”Practical implicationsThis work introduces important policy implications for the policymakers in the Palestinian labor market. It reveals the economic and social factors, individual worker characteristics as well as labor market characteristics contribute to the wage inequality in Palestine.Social implicationsThis research reveals a crucial social challenge in the Palestinian society, represented by the wage discrimination against refugees in Palestine. This is despite the denial of such discrimination from official bodies, local institutions and many other policymakers. It also captures gender inequality between men and women.Originality/valueThis is the first empirical work in Palestine that contends with a very sensitive issue in the Palestinian society, that is, the discrimination against refugees in the Palestinian labor market. Most of the existing studies have approached this issue from a humanitarian view in order to show the deterioration of social and economic situations in the refugee camps.


2019 ◽  
Vol 37 (1) ◽  
pp. 51-64
Author(s):  
Darragh Flannery ◽  
Tom Turner

Abstract Over recent years pay levels in the public sector of the economy have come under increasing scrutiny. This paper provides an assessment of the key issues and challenges central to a comparison of wage levels in the private and public sector in Ireland. A review of the extant studies that have employed multivariate analysis to estimate the gap between public and private sector wages in Ireland indicates a wage premium in favour of public sector workers. However the actual magnitude of the earnings gap is difficult to accurately assess as the size of the premium varies markedly across these various studies. A number of possible options are suggested to guide the development of a fair system for assessing wage levels in the public sector.


2016 ◽  
Vol 31 (3) ◽  
pp. 222-248 ◽  
Author(s):  
Verena Tandrayen-Ragoobur ◽  
Rajeev Pydayya

Purpose This paper aims to analyse the magnitude of the gender wage disparity in the public and private sectors in Mauritius across both mean differentials and overall wage distribution. The paper then decomposed the gender wage differential using the Oaxaca and Blinder (1973) decomposition technique. Design/methodology/approach The study uses cross-sectional data from the Continuous Multi-Purpose Household Budget Survey (CMPHS), from 2006 to 2013. The sample size on average is around 12,000 households surveyed per year. Findings The results reveal that that gender wage differentials are prevalent in both economic sectors; however, the disparity is more pronounced in the private sector. In addition, the differences in wages are larger at the bottom compared to the top end of the wage distribution, suggesting the presence of sticky floors. Lastly, it was observed that the unexplained wage gap (discrimination) is higher in the private sector than in public sector across the years. Originality/value The literature on the gender wage gap in Africa is limited. This paper adds to the existing literature on gender wage differential with an analysis of the gender wage disparity across the public and private sectors in Mauritius.


2019 ◽  
Vol 13 (2) ◽  
pp. 232-253
Author(s):  
Chandan Kumar Mohanty ◽  
Smrutirekha Mohanty

This article examines if there is a wage gap between public and private mining (and quarrying) workers in India, using the NSS data (2004–2005, 2009–2010 and 2011–2012). We employ linear and quantile regressions to estimate the wage gap. The ordinary least squares (OLS) results suggest that workers in the public sector mines (and quarries) earn 59 per cent more than their private sector counterparts. However, the wage gap is not uniform across the conditional wage distribution. The quantile regression estimates show that the magnitude of the wage gap is larger at the bottom quantile than at the top; the gap reduces as we move up the wage distribution. Observations drawn from our sub-sample analysis concur with these findings. JEL Classification: J21, J31, J45


Author(s):  
Rizky Fitria

Are Indonesian government officials overpaid? If they are, should Indonesia’s decision makers reduce the civil servants’ wage rate? Practically, the best comparison for the public sector’s wage is the private sector’s remuneration. Therefore, this study investigates the wage differential between public and private sectors in Indonesia. To obtain robust estimations, it needs to eliminate the effects from differences in workers’ and jobs’ characteristic as well as the selection bias problem. Therefore, it applies various methodologies such as Heckman Correction Method and Quantile Wage Regression by using the newest data retrieved from Indonesia Family Life Survey (IFLS) 5 in 2014. The results suggest that differences in wages among two sectors are positive, meaning that Indonesia’s government workers earned higher wages with respect to their private counterparts. Some of those results were consistent with former studies in other countries but revealed different trends compared to previous Indonesian data. The wage gap found in this study was higher for individuals with tertiary education level and varied along the wage distribution.


2020 ◽  
pp. 135050682097902
Author(s):  
Patricia Moreno-Mencía ◽  
Ana Fernández-Sainz ◽  
Juan M. Rodríguez-Poo

Using microdata from the Wage Structure Survey, we analyse the gender wage gap in the private and public sectors, considering the whole wage distribution. The main contribution is to assume that the decision to work in a sector is a prior process determined endogenously in the model. Thus, the usual Ordinary Least Square estimation is inconsistent, and it is necessary to use alternative techniques. We use quantile regression techniques to calculate how much of the gap is due to differences in returns between men and women and sectors, taking into account the sample selection bias. We find that the size of the gap attributed to different returns varies substantially across the wage distribution. Public sector employees are paid higher wages, on average, than their counterparts in the private sector, and the gap is wider for women. Moreover, the proportion of the gender wage gap explained (by different characteristics) tends to be greater for workers who are at the bottom of the wage distribution in both sectors. A look at the whole wage distribution reveals that discrimination in the gender wage gap is typically higher at its top than at its bottom, suggesting that glass ceilings are more prevalent than sticky floors for both men and women.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Moumita Acharyya ◽  
Tanuja Agarwala

PurposeThe paper aims to understand the different motivations / reasons for engaging in CSR initiatives by the organizations. In addition, the study also examines the relationship between CSR motivations and corporate social performance (CSP).Design/methodology/approachThe data were collected from two power sector organizations: one was a private sector firm and the other was a public sector firm. A comparative analysis of the variables with respect to private and public sector organizations was conducted. A questionnaire survey was administered among 370 employees working in the power sector, with 199 executives from public sector and 171 from private sector.Findings“Philanthropic” motivation emerged as the most dominant CSR motivation among both the public and private sector firms. The private sector firm was found to be significantly higher with respect to “philanthropic”, “enlightened self-interest” and “normative” CSR motivations when compared with the public sector firms. Findings suggest that public and private sector firms differed significantly on four CSR motivations, namely, “philanthropic”, “enlightened self-interest”, “normative” and “coercive”. The CSP score was significantly different among the two power sector firms of public and private sectors. The private sector firm had a higher CSP level than the public sector undertaking.Research limitations/implicationsFurther studies in the domain need to address differences in CSR motivations and CSP across other sectors to understand the role of industry characteristics in influencing social development targets of organizations. Research also needs to focus on demonstrating the relationship between CSP and financial performance of the firms. Further, the HR outcomes of CSR initiatives and measurement of CSP indicators, such as attracting and retaining talent, employee commitment and organizational climate factors, need to be assessed.Originality/valueThe social issues are now directly linked with the business model to ensure consistency and community development. The results reveal a need for “enlightened self-interest” which is the second dominant CSR motivation among the organizations. The study makes a novel contribution by determining that competitive and coercive motivations are not functional as part of organizational CSR strategy. CSR can never be forced as the very idea is to do social good. Eventually, the CSR approach demands a commitment from within. The organizations need to emphasize more voluntary engagement of employees and go beyond statutory requirements for realizing the true CSR benefits.


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