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

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dc.contributor.authorCoppola, Andrea
dc.contributor.authorCalvo-Gonzalez, Oscar
dc.date.accessioned2012-03-19T18:05:46Z
dc.date.available2012-03-19T18:05:46Z
dc.date.issued2011-10-01
dc.description.abstractDo 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.en
dc.identifierhttp://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.doi10.1596/1813-9450-5858
dc.identifier.urihttps://hdl.handle.net/10986/3624
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5858
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectAVERAGE EDUCATION LEVEL
dc.subjectCITIES
dc.subjectCUMULATIVE DISTRIBUTION FUNCTION
dc.subjectDATA SET
dc.subjectDEPENDENT VARIABLE
dc.subjectDESCRIPTIVE STATISTICS
dc.subjectDRIVERS
dc.subjectEARNING
dc.subjectECONOMETRIC ANALYSIS
dc.subjectECONOMIC POLICY
dc.subjectECONOMIC REVIEW
dc.subjectEDUCATION LEVELS
dc.subjectEMPIRICAL ANALYSIS
dc.subjectEMPIRICAL EVIDENCE
dc.subjectEMPIRICAL STUDIES
dc.subjectEMPLOYEE
dc.subjectEMPLOYMENT
dc.subjectEXPLANATORY POWER
dc.subjectEXPLANATORY VARIABLE
dc.subjectEXPLANATORY VARIABLES
dc.subjectFIRING COSTS
dc.subjectHOUSEHOLD DATA
dc.subjectHOUSEHOLD SURVEY
dc.subjectHUMAN CAPITAL
dc.subjectHUMAN RESOURCES
dc.subjectJOB SECURITY
dc.subjectLABOR ECONOMICS
dc.subjectLABOR FORCE
dc.subjectLABOR FORCE PARTICIPATION
dc.subjectLABOR MARKET
dc.subjectLABOR MARKET DISCRIMINATION
dc.subjectLABOR MARKETS
dc.subjectLEVEL OF EDUCATION
dc.subjectLEVELS OF EDUCATION
dc.subjectLINEAR REGRESSION
dc.subjectNO-SHIRKING CONSTRAINT
dc.subjectPOLICY DISCUSSIONS
dc.subjectPOLICY RESEARCH
dc.subjectPOLITICAL ECONOMY
dc.subjectPOSITIVE EFFECT
dc.subjectPOSITIVE IMPACT
dc.subjectPOSTGRADUATE EDUCATION
dc.subjectPRELIMINARY ANALYSIS
dc.subjectPREVIOUS SECTION
dc.subjectPRIMARY EDUCATION
dc.subjectPRIVATE SECTOR
dc.subjectPRIVATE SECTOR EMPLOYEE
dc.subjectPRIVATE SECTOR EMPLOYEES
dc.subjectPRIVATE SECTOR JOB
dc.subjectPRIVATE SECTOR PUBLIC
dc.subjectPRIVATE SECTOR WAGE
dc.subjectPRIVATE SECTOR WAGES
dc.subjectPRIVATE SECTOR WORKERS
dc.subjectPRIVATE SECTORS
dc.subjectPROBIT EQUATION
dc.subjectPROBIT EQUATIONS
dc.subjectPUBLIC ADMINISTRATION
dc.subjectPUBLIC EXPENDITURES
dc.subjectPUBLIC SECTOR
dc.subjectPUBLIC SECTOR COMPENSATION
dc.subjectPUBLIC SECTOR EMPLOYEE
dc.subjectPUBLIC SECTOR EMPLOYEES
dc.subjectPUBLIC SECTOR EMPLOYMENT
dc.subjectPUBLIC SECTOR JOB
dc.subjectPUBLIC SECTOR PAY
dc.subjectPUBLIC SECTOR WAGE
dc.subjectPUBLIC SECTOR WAGES
dc.subjectPUBLIC SECTOR WORKERS
dc.subjectPUBLIC SECTORS
dc.subjectREGRESSION ANALYSIS
dc.subjectRETIREMENT
dc.subjectSERVANTS
dc.subjectSKILLED WORKERS
dc.subjectURBAN AREAS
dc.subjectURBAN WORKERS
dc.subjectWAGE BILL
dc.subjectWAGE COMPRESSION
dc.subjectWAGE DATA
dc.subjectWAGE DIFFERENTIAL
dc.subjectWAGE DIFFERENTIALS
dc.subjectWAGE DISTRIBUTION
dc.subjectWAGE LEVELS
dc.subjectWAGE PREMIUM
dc.subjectWAGE RATES
dc.subjectWORKER
dc.subjectWORKERS
dc.subjectWORKING EXPERIENCE
dc.titleHigher Wages, Lower Pay : Public vs. Private Sector Compensation in Peruen
dspace.entity.typePublication
okr.crossref.titleHigher Wages, Lower Pay: Public vs. Private Sector Compensation in Peru
okr.date.disclosure2011-10-01
okr.date.doiregistration2025-04-10T11:08:30.757763Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111026082814
okr.globalpracticeEducation
okr.globalpracticePoverty
okr.guid798591468294995210
okr.identifier.doi10.1596/1813-9450-5858
okr.identifier.externaldocumentum000158349_20111026082814
okr.identifier.internaldocumentum15366256
okr.identifier.reportWPS5858
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2011/10/26/000158349_20111026082814/Rendered/PDF/WPS5858.pdfen
okr.region.administrativeLatin America & Caribbean
okr.region.administrativeLatin America & Caribbean
okr.region.countryPeru
okr.region.geographicalSouth America
okr.region.geographicalAmerica
okr.topicPoverty Reduction::Inequality
okr.topicEducation::Education and Digital Divide
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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