The Public/Private Wage Differential in the Land of Gross National Happiness

The Public/Private Wage Differential in the Land of Gross National Happiness

In Bhutan, the public sector is usually seen as the most desirable employer. This study asks if this can be attributed to public sector employees receiving higher wages than comparable private sector workers. To answer the question, the study combi...

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Main Author: Schmillen, Achim D.
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2017
Subjects:
public-private wage differential
sector selection
decomposition
public wages
Online Access:http://documents.worldbank.org/curated/en/557301482173775864/The-public-private-wage-differential-in-the-land-of-gross-national-happiness
http://hdl.handle.net/10986/25828
id okr-10986-25828
recordtype oai_dc
spelling okr-10986-258282021-06-08T14:42:46Z The Public/Private Wage Differential in the Land of Gross National Happiness Schmillen, Achim D. public-private wage differential sector selection decomposition public wages In Bhutan, the public sector is usually seen as the most desirable employer. This study asks if this can be attributed to public sector employees receiving higher wages than comparable private sector workers. To answer the question, the study combines an Oaxaca-type decomposition of wage differentials into characteristics and coefficients effects with a multinomial logit model for self-selection into labor force participation and the public or private sector. The study finds that the public/private wage differential is sizeable but can entirely be accounted for by observable characteristics. At the same time, there is strong evidence that preferences for public sector jobs are caused by pronounced intersectoral differences in overall compensation packages, in particular fringe benefits. 2017-01-10T17:49:30Z 2017-01-10T17:49:30Z 2016-12 Working Paper http://documents.worldbank.org/curated/en/557301482173775864/The-public-private-wage-differential-in-the-land-of-gross-national-happiness http://hdl.handle.net/10986/25828 English en_US Policy Research Working Paper;No. 7925 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper South Asia Bhutan
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 public-private wage differential
sector selection
decomposition
public wages
spellingShingle public-private wage differential
sector selection
decomposition
public wages
Schmillen, Achim D.
The Public/Private Wage Differential in the Land of Gross National Happiness
geographic_facet South Asia
Bhutan
relation Policy Research Working Paper;No. 7925
description In Bhutan, the public sector is usually seen as the most desirable employer. This study asks if this can be attributed to public sector employees receiving higher wages than comparable private sector workers. To answer the question, the study combines an Oaxaca-type decomposition of wage differentials into characteristics and coefficients effects with a multinomial logit model for self-selection into labor force participation and the public or private sector. The study finds that the public/private wage differential is sizeable but can entirely be accounted for by observable characteristics. At the same time, there is strong evidence that preferences for public sector jobs are caused by pronounced intersectoral differences in overall compensation packages, in particular fringe benefits.
format Working Paper
author Schmillen, Achim D.
author_facet Schmillen, Achim D.
author_sort Schmillen, Achim D.
title The Public/Private Wage Differential in the Land of Gross National Happiness
title_short The Public/Private Wage Differential in the Land of Gross National Happiness
title_full The Public/Private Wage Differential in the Land of Gross National Happiness
title_fullStr The Public/Private Wage Differential in the Land of Gross National Happiness
title_full_unstemmed The Public/Private Wage Differential in the Land of Gross National Happiness
title_sort public/private wage differential in the land of gross national happiness
publisher World Bank, Washington, DC
publishDate 2017
url http://documents.worldbank.org/curated/en/557301482173775864/The-public-private-wage-differential-in-the-land-of-gross-national-happiness
http://hdl.handle.net/10986/25828
_version_ 1764460252255748096

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