Evolution of the Public–Private Sector Wage Differential during Transition in Estonia
2006; Taylor & Francis; Volume: 18; Issue: 4 Linguagem: Inglês
10.1080/14631370601008548
ISSN1465-3958
Autores Tópico(s)Fiscal Policy and Economic Growth
ResumoAbstract This article estimates the public–private sector wage differential in Estonia over the transition period. Quantile regression is used with a dataset from Estonian Labour Force Surveys from 1989 to 2004 for this purpose. The results of the analysis indicate that the public–private sector wage differential was negative during early transition but has decreased subsequently. It also shows that employees with low potential wages tend to gain more or lose less from working in the public sector than workers with high potential wages. The public–private sector wage differential is negatively related to the number of public employees and tends to be counter-cyclical. Political cycles have no effect on the public–private sector wage differential in Estonia. Notes Kristjan-Olari Leping, Lecturer in Economic Theory, University of Tartu Pärnu College, Ringi 35, Pärnu 80010, Estonia, and Doctoral Student, Tartu University School of Economics and Business Administrationkristjan-olari.leping@ut.ee. The author is very grateful to Estonian Science Foundation Grant No. 6479, ‘The Valuation of Human Capital in the Estonian Labour Market: Issues of Over-education and Skill Mismatch (2005–2008)’, for support. 1. Appendices 1–14 are available from the author on request. Additional informationNotes on contributorsKristjan-Olari Leping Kristjan-Olari Leping, Lecturer in Economic Theory, University of Tartu Pärnu College, Ringi 35, Pärnu 80010, Estonia, and Doctoral Student, Tartu University School of Economics and Business Administrationkristjan-olari.leping@ut.ee. The author is very grateful to Estonian Science Foundation Grant No. 6479, ‘The Valuation of Human Capital in the Estonian Labour Market: Issues of Over-education and Skill Mismatch (2005–2008)’, for support.
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