Public-private sector pay gaps in Finland: A quantile regression analysis
Maczulskij, T., & Pehkonen, J. (2011). Public-private sector pay gaps in Finland: A quantile regression analysis. Finnish Economic Papers, 24 (2), 111-127. Retrieved from http://www.taloustieteellinenyhdistys.fi/images/stories/fep/fep22011/f...
Published inFinnish Economic Papers
© the Authors & Finnish Economic Association, 2011. Published in this repository with the kind permission of the publisher.
This paper examines public-private sector wage differentials in Finland using a quantile regression method. We control for the endogeneity of the working sector and allow the returns of individual skills to vary between industries. The results suggest that men earn a premium of 3 percent in the public sector at the lower-end jobs. At the median and the upper end of the distribution, men’s pay gap is negative, varying between 5 and 10 percent. Women, in turn, always earn more in the public sector (4–10 percent), and the premium is highest at the upper end of the earnings distribution. (JEL: J31, J45)
PublisherFinnish Economic Association
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