Public versus Private Sector Wage Gap in Egypt: Evidence from Quantile Regression on Panel Data

Aysıt Tansel (), Halil Ibrahim Keskin () and Zeynel Ozdemir ()
Additional contact information
Halil Ibrahim Keskin: Cukurova University

No 11895, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper considers the public and private sector wage earners in Egypt and examines their wage distribution during 1998-2012 using Egyptian Labor Market Panel Survey. We estimate the public-private sector wage gap with Mincer wage equations both at the mean and at different quantiles of the wage distribution. In this process we take into account observable and unobservable characteristics of the individuals using the panel feature of the data with a fixed effects model. We address sector of employment selection issue for both males and females. We find that there is very little evidence of sample selection in our data. Therefore, we present both the selection corrected results and the results with no selection correction. We find a persistent public sector wage penalty for males and public sector wage premium for females in the face of extensive sensitivity checks. They are larger when unobserved heterogeneity is taken into account for males but insignificant for females. They are similar across the quantiles for males but, smaller at the top than at the bottom of the conditional wage distribution for females. We further examine the public sector wage gap over time and in different sub-groups according to age and education. The public sector wage penalty for males has decreased recently over time and is larger for the better educated and younger. We also find substantial regional differences in public sector wage gap for males.

Keywords: quantile regression; public sector; panel data; Egypt; sample selection; private sector; gender; wage gap (search for similar items in EconPapers)
JEL-codes: C21 C23 J16 J31 J45 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2018-10
New Economics Papers: this item is included in nep-ara and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published - substantially revised version published as 'Public-Private Sector Wage Gap by Gender in Egypt: Evidence from Quantile Regression on Panel Data, 1998-2018' in: World Development, 2020, 135, 105060

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Related works:
Working Paper: Public Versus Private Sector Wage Gap in Egypt: Evidence from Quantile Regression on Panel Data (2018)
Working Paper: Public versus Private Sector Wage Gap in Egypt: Evidence from Quantile Regression on Panel Data (2018)
Working Paper: Public versus Private Sector Wage Gap in Egypt: Evidence from Quantile Regression on Panel Data (2018)
Working Paper: Public versus Private Sector Wage Gap in Egypt: Evidence from Quantile Regression on Panel Data (2008)
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