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

AbdelRahmen El Lahga () and Ines Bouassida

No 1168, Working Papers from Economic Research Forum

Abstract: The dysfunction of the Tunisian labor market is exacerbated particularly by the segmentation between public and private sectors 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 paper, 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 of the wage distribution the positive wage gap between public and private sectors mainly attributable to the composition or characteristics of workers, the wage gap in the upper of the distribution is due to returns to characteristics effect. The public-sector wage premium explains the strong preference public positions.

Pages: 28
Date: 2017-21-12, Revised 2017
New Economics Papers: this item is included in nep-ara and nep-ure
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