Does Indonesia Have a "Low-Pay" Civil Service?
Government officials and polcy analysts maintain that Indonesia's civil servants are poorly paid and have been for decades. This conclusion is supported by anecdotal evidence and casual empiricism. The authors systematically analyze the realti...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2001/06/1346427/indonesia-low-pay-civil-service http://hdl.handle.net/10986/19589 |
| Summary: | Government officials and polcy analysts
maintain that Indonesia's civil servants are poorly
paid and have been for decades. This conclusion is supported
by anecdotal evidence and casual empiricism. The authors
systematically analyze the realtionship between government
and private compensation levels using data from two large
household surveys carried out by Indonesia's Central
Bureau of Statistics: the 1998 Sakernas and 1999 Susenas.
The results suggest that government workers with a high
school education or less, representing three-quarters of the
civil service, earn a pay premium over their private sector
counterparts. Civil servants with more than a high school
education earn less than they would in the private sector
but, on average, the premium is far smaller than commonly is
alleged and is in keeping with public/private differentials
in other countries. These results prove robust to varying
econometric specifications and cast doubt on low pay as an
explanation for government corruption. |
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