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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DOI: 10.1007/s00181-018-1592-7
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