Higher Wages, Lower Pay : Public vs. Private Sector Compensation in Peru

Coppola, Andrea; Calvo-Gonzalez, Oscar

dc.creator	Coppola, Andrea
dc.creator	Calvo-Gonzalez, Oscar
dc.date	2012-03-19T18:05:46Z
dc.date	2012-03-19T18:05:46Z
dc.date	2011-10-01
dc.date.accessioned	2023-02-17T21:00:34Z
dc.date.available	2023-02-17T21:00:34Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111026082814
dc.identifier	http://hdl.handle.net/10986/3624
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/244588
dc.description	Do public sector employees earn less than their counterparts in the private sector? This paper addresses this question in the case of Peru, a country where civil service reform is being debated yet the only available empirical studies on wage differentials date back to the late 1980s. Using data from the 2009 national household survey, the authors perform a multiple step analysis. First, they estimate a single equation with a public sector dummy, which is found to be statistically significant and positive when only monetary wages are taken into account. However, when in-kind payments and bonuses are included to measure compensation, the analysis finds a private sector premium. Second, they estimate for public and formal private employees two distinct wage functions, including the inverse Mills ratio. This takes into account the selection bias resulting from workers self-selecting into the public or private sector. Third, these results are used to decompose wage differentials using the standard Oaxaca-Blinder approach. The results show that the compensation differentials are not significant except for the sub-sample of employees that achieved a postgraduate degree.
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 5858
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	AVERAGE EDUCATION LEVEL
dc.subject	CITIES
dc.subject	CUMULATIVE DISTRIBUTION FUNCTION
dc.subject	DATA SET
dc.subject	DEPENDENT VARIABLE
dc.subject	DESCRIPTIVE STATISTICS
dc.subject	DRIVERS
dc.subject	EARNING
dc.subject	ECONOMETRIC ANALYSIS
dc.subject	ECONOMIC POLICY
dc.subject	ECONOMIC REVIEW
dc.subject	EDUCATION LEVELS
dc.subject	EMPIRICAL ANALYSIS
dc.subject	EMPIRICAL EVIDENCE
dc.subject	EMPIRICAL STUDIES
dc.subject	EMPLOYEE
dc.subject	EMPLOYMENT
dc.subject	EXPLANATORY POWER
dc.subject	EXPLANATORY VARIABLE
dc.subject	EXPLANATORY VARIABLES
dc.subject	FIRING COSTS
dc.subject	HOUSEHOLD DATA
dc.subject	HOUSEHOLD SURVEY
dc.subject	HUMAN CAPITAL
dc.subject	HUMAN RESOURCES
dc.subject	JOB SECURITY
dc.subject	LABOR ECONOMICS
dc.subject	LABOR FORCE
dc.subject	LABOR FORCE PARTICIPATION
dc.subject	LABOR MARKET
dc.subject	LABOR MARKET DISCRIMINATION
dc.subject	LABOR MARKETS
dc.subject	LEVEL OF EDUCATION
dc.subject	LEVELS OF EDUCATION
dc.subject	LINEAR REGRESSION
dc.subject	NO-SHIRKING CONSTRAINT
dc.subject	POLICY DISCUSSIONS
dc.subject	POLICY RESEARCH
dc.subject	POLITICAL ECONOMY
dc.subject	POSITIVE EFFECT
dc.subject	POSITIVE IMPACT
dc.subject	POSTGRADUATE EDUCATION
dc.subject	PRELIMINARY ANALYSIS
dc.subject	PREVIOUS SECTION
dc.subject	PRIMARY EDUCATION
dc.subject	PRIVATE SECTOR
dc.subject	PRIVATE SECTOR EMPLOYEE
dc.subject	PRIVATE SECTOR EMPLOYEES
dc.subject	PRIVATE SECTOR JOB
dc.subject	PRIVATE SECTOR PUBLIC
dc.subject	PRIVATE SECTOR WAGE
dc.subject	PRIVATE SECTOR WAGES
dc.subject	PRIVATE SECTOR WORKERS
dc.subject	PRIVATE SECTORS
dc.subject	PROBIT EQUATION
dc.subject	PROBIT EQUATIONS
dc.subject	PUBLIC ADMINISTRATION
dc.subject	PUBLIC EXPENDITURES
dc.subject	PUBLIC SECTOR
dc.subject	PUBLIC SECTOR COMPENSATION
dc.subject	PUBLIC SECTOR EMPLOYEE
dc.subject	PUBLIC SECTOR EMPLOYEES
dc.subject	PUBLIC SECTOR EMPLOYMENT
dc.subject	PUBLIC SECTOR JOB
dc.subject	PUBLIC SECTOR PAY
dc.subject	PUBLIC SECTOR WAGE
dc.subject	PUBLIC SECTOR WAGES
dc.subject	PUBLIC SECTOR WORKERS
dc.subject	PUBLIC SECTORS
dc.subject	REGRESSION ANALYSIS
dc.subject	RETIREMENT
dc.subject	SERVANTS
dc.subject	SKILLED WORKERS
dc.subject	URBAN AREAS
dc.subject	URBAN WORKERS
dc.subject	WAGE BILL
dc.subject	WAGE COMPRESSION
dc.subject	WAGE DATA
dc.subject	WAGE DIFFERENTIAL
dc.subject	WAGE DIFFERENTIALS
dc.subject	WAGE DISTRIBUTION
dc.subject	WAGE LEVELS
dc.subject	WAGE PREMIUM
dc.subject	WAGE RATES
dc.subject	WORKER
dc.subject	WORKERS
dc.subject	WORKING EXPERIENCE
dc.title	Higher Wages, Lower Pay : Public vs. Private Sector Compensation in Peru
dc.type	Publications & Research :: Policy Research Working Paper
dc.coverage	Latin America & Caribbean
dc.coverage	Latin America & Caribbean
dc.coverage	South America
dc.coverage	America
dc.coverage	Peru