Public–private wage differential in a post‐transition economy
Gabriela Grotkowska (),
Leszek Wincenciak and
Tomasz Gajderowicz ()
The Economics of Transition, 2018, vol. 26, issue 3, 495-522
In this study, we estimate the public sector wage premium in a post‐transition economy, a quarter of a century since the collapse of the old regime. Our methodology uses a copula method to estimate the switching regression model, which allows for the relaxation of the restrictive assumption of joint normality. We control for employment selection into both sectors using an instrument based on information regarding learned professions. We use data from the Polish Survey of Earnings by Occupations (2012). Contrary to earlier results for Poland, we found positive selection into employment in both sectors, with positive average treatment effect on the treated and negative average treatment effect on the untreated. The results suggest that both private and public sector employees select themselves into the sector in which they earn more than they would in a counterfactual scenario.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:etrans:v:26:y:2018:i:3:p:495-522
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0967-0750
Access Statistics for this article
The Economics of Transition is currently edited by Philippe Aghion and Wendy Carlin
More articles in The Economics of Transition from The European Bank for Reconstruction and Development Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().