Do Truly Comparable Public and Private Sector Workers Show Any Compensation Differential?

TitleDo Truly Comparable Public and Private Sector Workers Show Any Compensation Differential?
Publication TypeJournal Article
Year of Publication2007
AuthorsRamoni-Perazzi, J, Bellante, D
JournalJournal of Labor Research
Volume28
Issue1
Pagination117
KeywordsEmployment and Labor Force, Income
Abstract

Using data from the Health and Retirement Study, we apply propensity score matching methods to examine evidence on the rent paid to public sector workers in the United States. Traditionally, wage differentials are computed assuming that workers from both public and private sectors are comparable, without actually controlling for the comparability of the units. Using this method, we are able to control for selection bias and, at the same time, select a subsample of comparable workers in terms of their conditional probability of choosing to work in the public sector on which to estimate separate wage equations.

URLhttps://www.researchgate.net/publication/225573004_Do_Truly_Comparable_Public_and_Private_Sector_Workers_Show_Any_Compensation_Differential
Endnote Keywords

Labor Supply/Income Inequality

Endnote ID

17300

Citation Key7135