A Switching Regression Model for Wage Determinants in the Public and Private Sectors of a Developing Country

Jacques van der Gaag and Wim Vijverberg

The Review of Economics and Statistics, 1988, vol. 70, issue 2, 244-52

Abstract: Governments in less developed countries face severe budgetary constraints. Given that public sector employment is a large part of modern sector employment, the government wage bill h as come under increased scrutiny. The central question is how do gove rnment wages compare with those in the private sector? In this paper, the authors develop and estimate a model to answer this question. An important aspect of this model is the endogenous treatment of sector choice. The estimation results (full information maximum likelihood) sound a strong warning against the use of ordinary least squares est imates that are based on sector-specific samples. Data are from the I vory Coast. Copyright 1988 by MIT Press.

Date: 1988
References: Add references at CitEc
Citations: View citations in EconPapers (89)

Downloads: (external link)
http://links.jstor.org/sici?sici=0034-6535%2819880 ... O%3B2-7&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tpr:restat:v:70:y:1988:i:2:p:244-52

Ordering information: This journal article can be ordered from
https://mitpressjour ... rnal/?issn=0034-6535

Access Statistics for this article

The Review of Economics and Statistics is currently edited by Pierre Azoulay, Olivier Coibion, Will Dobbie, Raymond Fisman, Benjamin R. Handel, Brian A. Jacob, Kareen Rozen, Xiaoxia Shi, Tavneet Suri and Yi Xu

More articles in The Review of Economics and Statistics from MIT Press
Bibliographic data for series maintained by The MIT Press ().