 SPATIAL VARIATION OF PUBLIC-PRIVATE WAGE DIFFERENTIALSOLSZTYN ECONOMIC JOURNAL, 2017, vol. 12, issue 1, 47-65 Abstract: The aim of this paper is to estimate the adjusted sectoral wage gap in Poland and to examine its spatial differences in terms of the size of settlement units. In particular, a hypothesis that there is a negative relation between the public-sector wage premium and the size of a settlement unit is tested. We use a set of individual data from the representative survey Human Capital Balance (BKL) carried out in Poland for the period from 2010 to 2014. We apply the control function approach (both with homogeneous and heterogeneous impacts) to address the problem of selection mechanism. We show that, after controlling for structural differences in employment, generally there is a moderate positive premium related to public employment. However, this premium differs between types of settlement units, with public employment being most attractive in medium-sized cities. This may pose a challenge for the public sector regarding attracting highly qualified employees in the biggest cities. As a consequence, the efficiency of public-sector services provision (education, healthcare, administration) may be seriously threatened. Keywords: public-private wage differentials; public-sector wage premium; control function; spatial differences in wages (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ole:journl:v:12:y:2017:i:1:p:47-65 Access Statistics for this article More articles in OLSZTYN ECONOMIC JOURNAL from University of Warmia and Mazury in Olsztyn, Faculty of Economic Sciences |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.