Public-Private Sector Wage Differentials and Returns to Education in Djibouti

Anós Casero, Paloma; Seshan, Ganesh

Public-Private Sector Wage Differentials and Returns to Education in Djibouti

Do public sector workers earn a wage premium in Djibouti and are the returns to education different across the sectors? The authors estimate private and public sector wage earnings using 1996 household survey data, while controlling for selectivity using Heckman's two stage approach. They find that Djiboutian public sector employees earn a wage premium, independent of their personal attributes and human capital endowments, and are more likely to be males and have parents in the public sector. Workers in the public sector earn higher private rates of return to education than do private sector workers with post-secondary schooling. These results raise concerns about current government hiring and wage-setting practices that generate distortions in the labor market and are not efficiently allocating labor and public resources.

Saved in:

Bibliographic Details
Main Authors:	Anós Casero, Paloma, Seshan, Ganesh
Format:	Policy Research Working Paper biblioteca
Language:	English
Published:	World Bank, Washington, DC 2006-05
Subjects:	ABSENTEEISM, AVERAGE WAGES, EARNING, EARNINGS REGRESSION, EARNINGS REGRESSIONS, ECONOMIC GROWTH, EDUCATED WORKERS, EDUCATION ATTAINMENT, EDUCATION LEVEL, EDUCATION LEVELS, EMPLOYEE, FINDING EMPLOYMENT, FISCAL DEFICITS, FORMAL EDUCATION, FORMAL SCHOOLING, HIGH SCHOOL, HIGH WAGES, HIGHER LEVELS OF EDUCATION, HIGHER RETURNS TO EDUCATION, HOUSEHOLD CHARACTERISTIC, HOUSEHOLD CHARACTERISTICS, HOUSEHOLD INCOME, HOUSEHOLD SURVEY, HOUSEHOLD SURVEYS, HUMAN CAPITAL, HUMAN RESOURCES, INFORMAL SECTOR, INFORMAL SECTOR WORKERS, INVESTMENT IN EDUCATION, JOBS, LABOR ECONOMICS, LABOR FORCE, LABOR FORCE PARTICIPATION, LABOR MARKET, LABOR MARKETS, LEVEL OF EDUCATION, MALE COUNTERPART, MALE COUNTERPARTS, MALE WORKERS, MIDDLE EAST, MIDDLE SCHOOL, MINIMUM WAGE, NORTH AFRICA, OCCUPATION, PREVIOUS WAGE, PRIMARY EDUCATION, PRIMARY SCHOOL, PRIMARY SCHOOLING, PRIVATE EMPLOYMENT, PRIVATE RETURNS, PRIVATE SECTOR, PRIVATE SECTOR EMPLOYEES, PRIVATE SECTOR PARTICIPATION, PRIVATE SECTOR WAGE, PRIVATE SECTOR WAGES, PRIVATE SECTOR WORKERS, PRIVATE SECTORS, PROBIT EQUATIONS, PUBLIC, PUBLIC ADMINISTRATION, PUBLIC EMPLOYMENT, PUBLIC EXPENDITURE, PUBLIC RESOURCES, PUBLIC SECTOR, PUBLIC SECTOR EMPLOYEES, PUBLIC SECTOR JOB, PUBLIC SECTOR WAGE, PUBLIC SECTOR WAGE BILL, PUBLIC SECTOR WAGES, PUBLIC SECTOR WORKERS, PUBLIC WAGE, PUBLIC WORKERS, RATES OF RETURN, RATES OF RETURN TO EDUCATION, RETURNS TO EDUCATION, SCHOOLING ATTAINMENT, SECONDARY EDUCATION, SECONDARY SCHOOL, SECONDARY SCHOOLING, SELF EMPLOYED, SERVANTS, TEACHERS, TERTIARY EDUCATION, VOCATIONAL TRAINING, WAGE BILL, WAGE DIFFERENTIAL, WAGE DIFFERENTIALS, WAGE EMPLOYMENT, WAGE LEVELS, WAGE PREMIUM, WORK EXPERIENCE, WORKER, WORKERS WITH UNIVERSITY EDUCATION,
Online Access:	http://documents.worldbank.org/curated/en/2006/05/6783639/public-private-sector-wage-differentials-returns-education-djibouti http://hdl.handle.net/10986/8660
Tags:	Add Tag No Tags, Be the first to tag this record!