Wage Differentials and State-Private Sector Employment Choice in the Federal Republic of Yugoslavia
The authors use the newly available Yugoslavian Labor Force Survey data to investigate wage differentials and employment decisions in the state and private sectors in Yugoslavia. For the analysis the authors use three empirical models that rely on...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2003/01/2128866/wage-differentials-state-private-sector-employment-choice-federal-republic-yugoslavia http://hdl.handle.net/10986/19173 |
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okr-10986-191732021-04-23T14:03:42Z Wage Differentials and State-Private Sector Employment Choice in the Federal Republic of Yugoslavia Lokshin, Michael M. Jovanovic, Branko WAGE DIFFERENTIATION EDUCATIONAL LEVEL REGULATORY FRAMEWORK TAX POLICY PRIVATE SECTOR SKILLED WORKERS CIVIL SERVICE AGRICULTURE BOOK VALUE CENTRALLY PLANNED ECONOMIES DEVELOPMENT ECONOMICS DISTRIBUTION OF INCOME DISTRICTS ECONOMIC CONDITIONS ECONOMIC SECTORS ECONOMIC STRUCTURE ECONOMICS RESEARCH EMPLOYMENT EQUALIZATION EQUATIONS EXOGENOUS VARIABLES FEDERAL GOVERNMENT FORMAL ANALYSIS GDP GENDER HUMAN CAPITAL INCOME DISTRIBUTION INFLATION INFORMAL ECONOMY INNOVATION ISOLATION LABOR MARKET LAWS LEGISLATIVE MEASURES PENSIONS PRIVATE OWNERSHIP PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRIVATIZATION PRIVATIZATION AGENCY PRIVATIZATION PROCEEDS PRODUCTIVITY PUBLIC SECTOR REPUBLICS RETIREMENT SICK LEAVE SOCIAL CAPITAL SOCIAL SECURITY SOFT BUDGET CONSTRAINTS STATE CONTROL STATE SECTOR TAXATION TRANSITION ECONOMIES TRANSPORT UNEMPLOYMENT UNEMPLOYMENT RATE VALUATION WAGE DIFFERENTIALS WAGE RATES WAGES WORKERS WORKING CAPITAL WORKING CONDITIONS The authors use the newly available Yugoslavian Labor Force Survey data to investigate wage differentials and employment decisions in the state and private sectors in Yugoslavia. For the analysis the authors use three empirical models that rely on different statistical assumptions. They extend the standard switching regression model to allow non-normality in the joint distribution of the error terms. After correcting for the sector selection bias and controlling for workers' characteristics the authors find a private sector wage advantage. The wage premium is largest for workers with low education levels and declining for workers with higher educational levels. Given the regulatory and tax policies that pushed the private sector into the informal sphere of the economy during the period covered by our data, the authors argue that the state-private wage gap is likely to grow in the future. This will make it increasingly difficult for the state sector to attract and retain highly skilled employees. 2014-08-01T15:35:33Z 2014-08-01T15:35:33Z 2003-01 http://documents.worldbank.org/curated/en/2003/01/2128866/wage-differentials-state-private-sector-employment-choice-federal-republic-yugoslavia http://hdl.handle.net/10986/19173 English en_US Policy Research Working Paper;No. 2959 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia Serbia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
WAGE DIFFERENTIATION EDUCATIONAL LEVEL REGULATORY FRAMEWORK TAX POLICY PRIVATE SECTOR SKILLED WORKERS CIVIL SERVICE AGRICULTURE BOOK VALUE CENTRALLY PLANNED ECONOMIES DEVELOPMENT ECONOMICS DISTRIBUTION OF INCOME DISTRICTS ECONOMIC CONDITIONS ECONOMIC SECTORS ECONOMIC STRUCTURE ECONOMICS RESEARCH EMPLOYMENT EQUALIZATION EQUATIONS EXOGENOUS VARIABLES FEDERAL GOVERNMENT FORMAL ANALYSIS GDP GENDER HUMAN CAPITAL INCOME DISTRIBUTION INFLATION INFORMAL ECONOMY INNOVATION ISOLATION LABOR MARKET LAWS LEGISLATIVE MEASURES PENSIONS PRIVATE OWNERSHIP PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRIVATIZATION PRIVATIZATION AGENCY PRIVATIZATION PROCEEDS PRODUCTIVITY PUBLIC SECTOR REPUBLICS RETIREMENT SICK LEAVE SOCIAL CAPITAL SOCIAL SECURITY SOFT BUDGET CONSTRAINTS STATE CONTROL STATE SECTOR TAXATION TRANSITION ECONOMIES TRANSPORT UNEMPLOYMENT UNEMPLOYMENT RATE VALUATION WAGE DIFFERENTIALS WAGE RATES WAGES WORKERS WORKING CAPITAL WORKING CONDITIONS |
| spellingShingle |
WAGE DIFFERENTIATION EDUCATIONAL LEVEL REGULATORY FRAMEWORK TAX POLICY PRIVATE SECTOR SKILLED WORKERS CIVIL SERVICE AGRICULTURE BOOK VALUE CENTRALLY PLANNED ECONOMIES DEVELOPMENT ECONOMICS DISTRIBUTION OF INCOME DISTRICTS ECONOMIC CONDITIONS ECONOMIC SECTORS ECONOMIC STRUCTURE ECONOMICS RESEARCH EMPLOYMENT EQUALIZATION EQUATIONS EXOGENOUS VARIABLES FEDERAL GOVERNMENT FORMAL ANALYSIS GDP GENDER HUMAN CAPITAL INCOME DISTRIBUTION INFLATION INFORMAL ECONOMY INNOVATION ISOLATION LABOR MARKET LAWS LEGISLATIVE MEASURES PENSIONS PRIVATE OWNERSHIP PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRIVATIZATION PRIVATIZATION AGENCY PRIVATIZATION PROCEEDS PRODUCTIVITY PUBLIC SECTOR REPUBLICS RETIREMENT SICK LEAVE SOCIAL CAPITAL SOCIAL SECURITY SOFT BUDGET CONSTRAINTS STATE CONTROL STATE SECTOR TAXATION TRANSITION ECONOMIES TRANSPORT UNEMPLOYMENT UNEMPLOYMENT RATE VALUATION WAGE DIFFERENTIALS WAGE RATES WAGES WORKERS WORKING CAPITAL WORKING CONDITIONS Lokshin, Michael M. Jovanovic, Branko Wage Differentials and State-Private Sector Employment Choice in the Federal Republic of Yugoslavia |
| geographic_facet |
Europe and Central Asia Serbia |
| relation |
Policy Research Working Paper;No. 2959 |
| description |
The authors use the newly available
Yugoslavian Labor Force Survey data to investigate wage
differentials and employment decisions in the state and
private sectors in Yugoslavia. For the analysis the authors
use three empirical models that rely on different
statistical assumptions. They extend the standard switching
regression model to allow non-normality in the joint
distribution of the error terms. After correcting for the
sector selection bias and controlling for workers'
characteristics the authors find a private sector wage
advantage. The wage premium is largest for workers with low
education levels and declining for workers with higher
educational levels. Given the regulatory and tax policies
that pushed the private sector into the informal sphere of
the economy during the period covered by our data, the
authors argue that the state-private wage gap is likely to
grow in the future. This will make it increasingly difficult
for the state sector to attract and retain highly skilled employees. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Lokshin, Michael M. Jovanovic, Branko |
| author_facet |
Lokshin, Michael M. Jovanovic, Branko |
| author_sort |
Lokshin, Michael M. |
| title |
Wage Differentials and State-Private Sector Employment Choice in the Federal Republic of Yugoslavia |
| title_short |
Wage Differentials and State-Private Sector Employment Choice in the Federal Republic of Yugoslavia |
| title_full |
Wage Differentials and State-Private Sector Employment Choice in the Federal Republic of Yugoslavia |
| title_fullStr |
Wage Differentials and State-Private Sector Employment Choice in the Federal Republic of Yugoslavia |
| title_full_unstemmed |
Wage Differentials and State-Private Sector Employment Choice in the Federal Republic of Yugoslavia |
| title_sort |
wage differentials and state-private sector employment choice in the federal republic of yugoslavia |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2003/01/2128866/wage-differentials-state-private-sector-employment-choice-federal-republic-yugoslavia http://hdl.handle.net/10986/19173 |
| _version_ |
1764439251027492864 |