Publication:
Are Public Sector Workers in Developing Countries Overpaid? Evidence from a New Global Data Set

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dc.contributor.authorNewhouse, David
dc.contributor.authorGindling, T. H.
dc.contributor.authorShi, Rong
dc.contributor.authorHasnain, Zahid
dc.date.accessioned2019-02-26T16:23:30Z
dc.date.available2019-02-26T16:23:30Z
dc.date.issued2019-02
dc.description.abstractThis paper examines the public sector wage premium using nationally representative household surveys from 91 countries. The public sector generally pays a wage premium compared to all private sector salaried employees, but the size of the premium is sensitive to the choice of the private sector comparator and varies considerably by worker characteristics. For most countries, the average premium disappears when the public sector is compared to only formal sector private employees, especially when controlling for occupation. The public sector wage premium is higher for women and low-skilled workers. In contrast, high-skilled public sector employees are most often paid the same as their private sector counterparts or may even pay a penalty for working in the public sector. Consistent with this, the public sector premium is greater for employees with less education, those working in lower paid occupations, and those whose earnings fall in the lower part of the conditional earnings distribution. Across countries, the wage premium is only weakly associated with countries’ level of development. These findings nuance the existing consensus that public sector workers tend to enjoy a significant wage premium over their private sector counterparts, and that this premium is especially large in low-income countries.en
dc.identifierhttp://documents.worldbank.org/curated/en/398361551117216050/Are-Public-Sector-Workers-in-Developing-Countries-Overpaid-Evidence-from-a-New-Global-Data-Set
dc.identifier.doi10.1596/1813-9450-8754
dc.identifier.urihttps://hdl.handle.net/10986/31328
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 8754
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectWAGES
dc.subjectLABOR MARKET
dc.subjectPUBLIC SECTOR EMPLOYMENT
dc.subjectLOW-SKILLED WORKER
dc.subjectEARNINGS DISTRIBUTION
dc.subjectWAGE PREMIUM
dc.subjectGENDER
dc.titleAre Public Sector Workers in Developing Countries Overpaid? Evidence from a New Global Data Seten
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleAre Public Sector Workers in Developing Countries Overpaid? Evidence from a New Global Data Set
okr.date.disclosure2019-02-25
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/398361551117216050/Are-Public-Sector-Workers-in-Developing-Countries-Overpaid-Evidence-from-a-New-Global-Data-Set
okr.guid398361551117216050
okr.identifier.doi10.1596/1813-9450-8754
okr.identifier.externaldocumentum090224b0869d29e3_1_0
okr.identifier.internaldocumentum30858015
okr.identifier.reportWPS8754
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/398361551117216050/pdf/WPS8754.pdfen
okr.statistics.combined5074
okr.statistics.dr398361551117216050
okr.statistics.drstats4492
okr.topicGender::Gender and Economics
okr.topicSocial Protections and Labor::Labor Markets
okr.topicSocial Protections and Labor::Wages, Compensation & Benefits
okr.topicPublic Sector Development::Public Sector Economics
okr.topicPublic Sector Development::Public Sector Administrative and Civil Service Reform
okr.unitGovernance Global Practice and the Poverty and Equity Global Practice
relation.isAuthorOfPublication6b781836-5ec8-534f-9fee-17e76547c6bb
relation.isAuthorOfPublication8440a442-0f2d-5095-a9eb-7c0b9d112d1a
relation.isAuthorOfPublication.latestForDiscovery8440a442-0f2d-5095-a9eb-7c0b9d112d1a
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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