Why Do Lazy People Make More Money?: The Strange Case of the Public Sector Wage Premium

Ugo Panizza

No 1896, IDB Publications (Working Papers) from Inter-American Development Bank

Abstract: Empirical work suggests the presence of a public sector wage premium, the reasons for which are investigated in this paper. The results demonstrate a higher premium paid to women and premium decreases concurrent with skills. Job security undermines the incentive to work hard and forces the public sector to pay higher wages. Thus, the public sector wage premium can be used as an indicator of inefficiency in the public sector.

Keywords: WP-403; efficiency wages; labor demand; OECD countries; labor market (search for similar items in EconPapers)
JEL-codes: H50 J45 (search for similar items in EconPapers)
Date: 1998-10
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Why Do Lazy People Make More Money? The Strange Case of the Public Sector Wage Premium (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:idb:brikps:1896

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