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The public–private sector wage gap in Latvia
Baltic Journal of Economics ( IF 1.435 ) Pub Date : 2018-04-02 , DOI: 10.1080/1406099x.2018.1457356
Karlis Vilerts 1
Affiliation  

ABSTRACT

This study investigates the public–private sector wage gap in Latvia using microdata from the labour force survey. The severity of public sector wage cuts employed as a response to the economic crisis and subsequent recovery provides a test bed to analyse whether and how the public–private sector wage gap has adjusted after consolidation-driven wage cuts. Findings reveal that the observed wage gap is slightly in favour of the public sector; however, once differences in individual characteristics and selection effects are considered, results point to a private sector wage premium. Findings also suggest that the private sector wage premium has increased since the pre-crisis period. A significant private sector wage premium raises doubts on whether a system that is reliant on discretionary fiscal measures is efficient enough in eliminating unwarranted differences in wage. In particular, whether a re-adjustment process of public sector wages works after consolidation-driven wage cuts.



中文翻译:

拉脱维亚的公私部门工资差距

摘要

本研究使用劳动力调查的微观数据调查了拉脱维亚的公私部门工资差距。为应对经济危机和随后的复苏而采取的公共部门减薪的严重程度,为分析合并驱动的减薪后公共和私营部门的薪资差距是否以及如何进行调整提供了测试平台。调查结果表明,观察到的工资差距稍微有利于公共部门;但是,一旦考虑了个人特征和选择效果的差异,结果就表明了私营部门的工资溢价。调查结果还表明,自危机前以来,私营部门的工资溢价有所增加。大量私营部门的工资溢价引起了人们的质疑,即依赖于自由裁量性财政措施的制度是否能有效消除不必要的工资差异。特别是,在合并驱动的减薪之后,公共部门工资的重新调整过程是否有效。

更新日期:2018-04-02
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