Decomposition of the wage gap between workers of public and private sectors in Argentina

The article analyzes differences between hourly wages in private and public employment in Argentina, based on aspects usually considered as components of worker human capital (such as education, experience or skills) along with other personal characteristics or with the environment where the worker...

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Main Authors: Juan Pablo Carranza, Carlos María Lucca
Format: Article
Language:English
Published: Universidad Nacional de Córdoba (UNC) 2016-12-01
Series:Revista Administración Pública y Sociedad
Subjects:
Online Access:https://revistas.unc.edu.ar/index.php/APyS/article/view/15306
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author Juan Pablo Carranza
Carlos María Lucca
author_facet Juan Pablo Carranza
Carlos María Lucca
author_sort Juan Pablo Carranza
collection DOAJ
description The article analyzes differences between hourly wages in private and public employment in Argentina, based on aspects usually considered as components of worker human capital (such as education, experience or skills) along with other personal characteristics or with the environment where the worker performs his tasks (such as the premises size or region where its located). Panel-data for the 2011-2015 period was built in order to analyze the gap between public and private employment average hourly wages. The Permanent Household Survey database prepared by the National Institute of Statistics and Census was the source of information. The Blinder-Oaxaca technique was applied, that breaks the wage differential into two groups, a part explained by characteristics of each group which are assumed to have some impact on productivity, such as education or work experience; and a residual part that cannot be explained by the former differences in human capital staffing. We conclude that 68.9% of the earnings’ differential (in absolute value) in favor of public employment is explained by higher human capital endowments of the workers in this sector. The effect of the coefficients (commonly associated with discrimination between sectors) explains only 12.4% of the observed hourly wage differential. The interaction term which is associated with structural factors of each of the analyzed labor markets (public or private), explains 18.7% of the hourly wage gap.
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spelling doaj.art-714eb373094c4dfd87a675ae146402622022-12-22T01:25:57ZengUniversidad Nacional de Córdoba (UNC)Revista Administración Pública y Sociedad2524-95682016-12-0102799314042Decomposition of the wage gap between workers of public and private sectors in ArgentinaJuan Pablo Carranza0Carlos María Lucca1Universidad Siglo 21. Secretaría de Investigación.Universidad Nacional de Córdoba. Facultad de Ciencias Sociales. Instituto de Investigación y Formación en Administración Pública.The article analyzes differences between hourly wages in private and public employment in Argentina, based on aspects usually considered as components of worker human capital (such as education, experience or skills) along with other personal characteristics or with the environment where the worker performs his tasks (such as the premises size or region where its located). Panel-data for the 2011-2015 period was built in order to analyze the gap between public and private employment average hourly wages. The Permanent Household Survey database prepared by the National Institute of Statistics and Census was the source of information. The Blinder-Oaxaca technique was applied, that breaks the wage differential into two groups, a part explained by characteristics of each group which are assumed to have some impact on productivity, such as education or work experience; and a residual part that cannot be explained by the former differences in human capital staffing. We conclude that 68.9% of the earnings’ differential (in absolute value) in favor of public employment is explained by higher human capital endowments of the workers in this sector. The effect of the coefficients (commonly associated with discrimination between sectors) explains only 12.4% of the observed hourly wage differential. The interaction term which is associated with structural factors of each of the analyzed labor markets (public or private), explains 18.7% of the hourly wage gap.https://revistas.unc.edu.ar/index.php/APyS/article/view/15306brecha salarialempleo público y privadoBlinder-Oaxaca.
spellingShingle Juan Pablo Carranza
Carlos María Lucca
Decomposition of the wage gap between workers of public and private sectors in Argentina
Revista Administración Pública y Sociedad
brecha salarial
empleo público y privado
Blinder-Oaxaca.
title Decomposition of the wage gap between workers of public and private sectors in Argentina
title_full Decomposition of the wage gap between workers of public and private sectors in Argentina
title_fullStr Decomposition of the wage gap between workers of public and private sectors in Argentina
title_full_unstemmed Decomposition of the wage gap between workers of public and private sectors in Argentina
title_short Decomposition of the wage gap between workers of public and private sectors in Argentina
title_sort decomposition of the wage gap between workers of public and private sectors in argentina
topic brecha salarial
empleo público y privado
Blinder-Oaxaca.
url https://revistas.unc.edu.ar/index.php/APyS/article/view/15306
work_keys_str_mv AT juanpablocarranza decompositionofthewagegapbetweenworkersofpublicandprivatesectorsinargentina
AT carlosmarialucca decompositionofthewagegapbetweenworkersofpublicandprivatesectorsinargentina