Artikel

The public-private sector wage gap in Latvia

This study investigates the public-private sector wage gap in Latvia using microdata from the labour force survey. The severity of public sector wage cuts employed as a response to the economic crisis and subsequent recovery provides a test bed to analyse whether and how the public-private sector wage gap has adjusted after consolidation-driven wage cuts. Findings reveal that the observed wage gap is slightly in favour of the public sector; however, once differences in individual characteristics and selection effects are considered, results point to a private sector wage premium. Findings also suggest that the private sector wage premium has increased since the pre-crisis period. A significant private sector wage premium raises doubts on whether a system that is reliant on discretionary fiscal measures is efficient enough in eliminating unwarranted differences in wage. In particular, whether a re-adjustment process of public sector wages works after consolidation-driven wage cuts.

Sprache
Englisch

Erschienen in
Journal: Baltic Journal of Economics ; ISSN: 2334-4385 ; Volume: 18 ; Year: 2018 ; Issue: 1 ; Pages: 25-50 ; London: Taylor & Francis

Klassifikation
Wirtschaft
Wage Level and Structure; Wage Differentials
Compensation Packages; Payment Methods
Labor Standards: Public Policy
Thema
Double sample selection
Oaxaca-Ransom decomposition
public sector wages
public-private sector wage gap

Ereignis
Geistige Schöpfung
(wer)
Vilerts, Karlis
Ereignis
Veröffentlichung
(wer)
Taylor & Francis
(wo)
London
(wann)
2018

DOI
doi:10.1080/1406099X.2018.1457356
Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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Objekttyp

  • Artikel

Beteiligte

  • Vilerts, Karlis
  • Taylor & Francis

Entstanden

  • 2018

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