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Public-Private Sector Wage Differentials in Spain. An Updated Picture in the Midst of the Great Recession

José Ignacio Antón and Rafael Muñoz de Bustillo

No 2015-10, Economics working papers from Department of Economics, Johannes Kepler University Linz, Austria

Abstract: Using the recent Wage Structure Survey 2010, this article examines the public-private sector wage gaps in Spain along the whole earnings distribution and the incidence of the gender gap in both sectors of the economy. Firstly, we find that that there is positive wage premium to public sector employment that is not fully explained by employees’ observable characteristics. Furthermore, this premium concentrates on lowskilled workers, while high-skilled individuals in the public sector suffer a pay penalty. Secondly, the gender gap is substantially larger in the private sector. Lastly, we analyse what happens in some specific activities, Education and Human health and social work, where both public and private sector coexist to a large extent. We discuss several explanations for these findings, which are coherent with the available international evidence, and the possible implications of the current process of downsizing of public sector employment associated with austerity measures.

Keywords: wage gap; public sector; gender gap; quantile regression (search for similar items in EconPapers)
JEL-codes: C21 J16 J31 J45 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2015-11
References: Add references at CitEc
Citations: View citations in EconPapers (5)

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Working Paper: Public-private sector wage differentials in Spain. An updated picture in the midst of the Great Recession (2013) Downloads
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