A new look at the public wage premium in Italy: the role of schooling endogeneity
Labour. Review of Labour Economics and Industrial Relations
2014
28
1
March
87-111
private sector ; public sector ; wage incentive ; wage structure
Wages and wage payment systems
http://dx.doi.org/10.1111/labr.12025
English
Bibliogr.
"This paper uses a sample of male workers to estimate public and private wage structures and the public wage premium for Italy. Results from a model with endogenous sector and schooling suggest that public employees have on average lower unobserved wage potentials in both sectors than private employees, but work in the sector where they benefit from a comparative wage advantage. Schooling is positively correlated with wages in both sectors, and controlling for that is crucial to get more reliable estimates and predictions. The associated average unconditional public wage premium is 12 per cent. The net premium is 9 per cent, but not statistically significant."
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