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Consistent estimates of the public/private wage gap

Domenico Depalo and Santiago Pereda-Fernández

Empirical Economics, 2020, vol. 58, issue 6, No 14, 2937-2947

Abstract: Abstract Existing estimates of the public/private wage gap allow for possible sorting of individuals into one sector, but they rely on parametric assumptions that may introduce substantial bias in the parameter of interest. Solutions are semi- and nonparametric approaches. For Italy, the latter methods yield a gap of approximately 20%, whereas the bias from parametric assumptions is as large as 10%.

Keywords: Public/private wage gap; Nonparametric regression; Sample selection (search for similar items in EconPapers)
JEL-codes: C14 J31 J38 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s00181-018-1592-7

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