Wage differentials between the public and private sectors in Chile: Evidence from longitudinal data

Navarro, Lucas
Selman, Gabriela

2014-09-09T18:30:36Z

5
LC/G.2601-P

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Includes bibliography.

Despite its importance, the literature on wage differentials between public- and private-sectors employees in Latin America is sparse. This article analyses the wage gap between the two sectors in Chile, based on monthly longitudinal data obtained from the Social Protection Survey (EPS) for the period 2002-2009. The study takes advantage of the panel structure of the data to control for time-invariant observable and unobservable factors that determine the self-selection of workers between sectors and wages. The results show that the wage differential between workers in the public and private sectors disappears when these factors are controlled for.

ECONOMETRIC MODELS; STATISTICAL DATA; WAGES; PUBLIC SECTOR; PRIVATE SECTOR; LABOUR MOBILITY; ECONOMIC ANALYSIS; DATOS ESTADISTICOS; MODELOS ECONOMETRICOS; MOVILIDAD DE LA MANO DE OBRA; ANALISIS ECONOMICO; SECTOR PUBLICO; SECTOR PRIVADO; SALARIOS;