Public-Private Sector Wage Differentials: The Case of Nigeria
Keywords:
Public-private sector wages, public sector, private sector, NigeriaAbstract
The public and private sector labor markets may operate differently in some countries. Due to the fact that the public sector in some cases makes up a significant share of wage employment, wage settings and other employment practices in the overall labor market may be influenced by the efficiency of the public sector labor markets. For this reason, many scholars paid close attention to this topic and examined the public – private sector wage differentials in developed and developing countries. This study estimates Mincerian wage equations in public and private sector in Nigeria. The data of this study come from the 2012-2013 Nigeria General Household (GHS) Survey-Panel Wave 2, Post Planting Household Questionnare. The results are consistent with Tansel (2005) as well as the current literature. Education and experience coefficient estimates are positively statistically significant for public and private sectors. In both public and private sectors, the rate of return to education is higher than the rate of return to experience. In addition, estimated coefficients suggest that individuals working in private sector have a lower rate of return to experience and education compared to individuals working in public sector.
References
Adamchik, Vera A., Bedi, Arjun S.,. (2000). Wage differentials between the public and the private sectors: Evidence from an economy in transition. Labour Economics, 7(2), 203-224.
Bulutay, T. (1995). Employment, unemployment and wages in turkey. Ankara: International Labour Office.
Falaris, E. M. (2004). Private and public sector wages in Bulgaria. Journal of Comparative Economics, 32(1)
Glinskaya, Elena, Lokshin, Michael. (2007). Wage differentials between the public and private sectors in india. Journal of International Development, 19(3), 333-355.
Heckman, J. J. (1979). Sample selection bias as a specification error. Econometrica Econometrica, 47(1), 153-161.
Heckman, J.,. (1974). Shadow prices, market wages, and labor supply. Econometrica, 42(4), 679-694.
Holmlund, B. (1993). Wage setting in private and public sectors in a model with endogenous government behavior. European Journal of Political Economy, 9(2), 149-162.
Kanellopoulos, C. N.,. (1997). Public-private wage differentials in greece. Applied Economics, 29(8), 1023-1032.
Mincer, Jacob. (1974). Schooling, experience, and earnings. New York: National Bureau of Economic Research; distributed by Columbia University Press.
Oaxaca, R. (1973). Male-female wage differentials in urban labor markets. International Economic Review, 14(3), 693-709.
Tansel, A. (1994). Wage employment, earnings and returns to schooling for men and women in turkey. Economics of Education Review, 13(4), 305-20.
Tansel, A.,. (2005). Public-private employment choice, wage differentials, and gender in turkey. Economic Development & Cultural Change, 53(2)
Downloads
Published
Issue
Section
License
Copyright (c) 2017 Emre Şakar, Mahmut Ünsal Şaşmaz (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.