A Contribution to the Public-Private Wage Inequality Debate: The Iconic Case of Romania

By: Voinea, Liviu.

Material type: materialTypeLabel

BookSeries: wiiw Balkan Observatory Working Papers: 93Publisher: Wien : Wiener Institut für Internationale Wirtschaftsvergleiche (wiiw), 2011Countries covered: RomaniaOnline resources: Click here to access online Summary: This paper studies the public-private wage inequality in Romania. Although public sector employment is perceived as safer and offers more benefits, we find that in Romania it also offers higher wages, after controlling for experience, education, and gender. Decomposing the public-private wage premium into the effect of personal characteristics, coefficients, and residuals, we show that only about half of this premium can be attributed to personal characteristics. The premium is increasing across the wage distribution, leading to more inequality in the public sector. We also find the effects of self-selection are negligible, the premium being still positive and significant after controlling for this.

Holdings
Item type	Current library	Call number	Status	Date due	Barcode
Paper	WIIW Library	93 (Browse shelf(Opens below))	Available		1000010003200

Browsing WIIW shelves, Shelving location: Library Close shelf browser (Hides shelf browser)

Previous	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	Next
Previous	914/231 Methodological Problems of FDI Statistics in Accession Countries and EU Countries	914/247 EU-Enlargement, migration and trafficking in women: the case of South Eastern Europe	92 Do Social Transfers "Crowd-Out" Remittances: Evidence from Bosnia	93 A Contribution to the Public-Private Wage Inequality Debate: The Iconic Case of Romania	94 The Effects of Flat Tax on Inequality and Informal Employment: The Case of Albania	95 Inequality and Public Policy: A Country Study for Bulgaria	96 Subgroup and Shapely Value Decompositions of Multidimensional Inequality: An Application to South East European Countries	Next

This paper studies the public-private wage inequality in Romania. Although public sector employment is perceived as safer and offers more benefits, we find that in Romania it also offers higher wages, after controlling for experience, education, and gender. Decomposing the public-private wage premium into the effect of personal characteristics, coefficients, and residuals, we show that only about half of this premium can be attributed to personal characteristics. The premium is increasing across the wage distribution, leading to more inequality in the public sector. We also find the effects of self-selection are negligible, the premium being still positive and significant after controlling for this.

Click on an image to view it in the image viewer