Public-private sector pay differentials in a devolved Scotland



300


Journal of Applied Economics

at the 1% level. Hence, on average, there is a substantial and significant pay gap
for both males and females. A Wilcoxon rank-sum test for the equality of the public
and private distribution is clearly rejected for both males and females.

Figure 1. Log hourly wages in the public and private sector by gender in 2000.


III. Econometric framework

The paramount aim of the paper is to estimate wages in the public and private
sector in order to study the causes of the unconditional earning differentials and
derive a
structural switching equation that determines the sector choice. Hence,
in the following a switching regression model is adopted (Lee 1978) that estimates
separate wage equations for the public and private sectors. Let
w1,i and w2,i be the
hourly wages in the public and private sector, respectively. Thus, the two log wage
equations to be estimated are:

ln w1,i = X1,i'β1 +ε1,i

(1)




More intriguing information

1. The name is absent
2. Perceived Market Risks and Strategic Risk Management of Food Manufactures: Empirical Results from the German Brewing Industry
3. Peer Reviewed, Open Access, Free
4. Educational Inequalities Among School Leavers in Ireland 1979-1994
5. Cross-Country Evidence on the Link between the Level of Infrastructure and Capital Inflows
6. The name is absent
7. Willingness-to-Pay for Energy Conservation and Free-Ridership on Subsidization – Evidence from Germany
8. Testing Panel Data Regression Models with Spatial Error Correlation
9. Assessing Economic Complexity with Input-Output Based Measures
10. BODY LANGUAGE IS OF PARTICULAR IMPORTANCE IN LARGE GROUPS
11. WP 36 - Women's Preferences or Delineated Policies? The development or part-time work in the Netherlands, Germany and the United Kingdom
12. Evolving robust and specialized car racing skills
13. Ahorro y crecimiento: alguna evidencia para la economía argentina, 1970-2004
14. The value-added of primary schools: what is it really measuring?
15. A Location Game On Disjoint Circles
16. Pupils’ attitudes towards art teaching in primary school: an evaluation tool
17. The name is absent
18. Spatial agglomeration and business groups: new evidence from Italian industrial districts
19. An Incentive System for Salmonella Control in the Pork Supply Chain
20. The name is absent