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dc.contributor.authorEarle, John S.en_US
dc.contributor.authorTelegdy, Álmosen_US
dc.date.accessioned2008-04-25en_US
dc.date.accessioned2010-07-07T11:23:05Z-
dc.date.available2010-07-07T11:23:05Z-
dc.date.issued2007en_US
dc.identifier.urihttp://hdl.handle.net/10419/34389-
dc.description.abstractStudies of public-private and foreign-domestic wage differentials face difficulties distinguishing ownership effects from correlated characteristics of workers and firms. This paper estimates these ownership differentials using linked employer-employee data (LEED) from Hungary containing 1.35mln worker-year observations for 21,238 firms from 1986 to 2003. We find that ownership type is highly correlated with characteristics of both workers (education, experience, gender, and occupation) and firms (size, industry, and productivity), suggesting ownership type is systematically selected along these dimensions. The large unconditional wage gaps in the data, 0.24 for public-private and 0.40 for foreign-domestic, are little affected by conditioning on worker characteristics, but controlling for industry reduces the public and foreign premia to 0.16 and 0.34, respectively, and controlling for employment size further reduces them to 0.07 and 0.28. We also exploit the presence of 3,700 switches of ownership type in the data to estimate firm fixed-effects and random trend models, accounting for unobserved firm characteristics affecting the average level and trend growth of wages. These controls have little effect on the conditional public-private gap, but they reduce the estimated foreign premium to 0.07. The results imply that the substantial unconditional wage differentials are mostly, but not entirely, a function of differences in worker and firm characteristics, and they illustrate the value of analyzing LEED to take such correlated factors into account.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesIZA Discussion Papers 3125en_US
dc.subject.ddc330en_US
dc.subject.keywordWagesen_US
dc.subject.keywordlinked employer-employee dataen_US
dc.subject.keywordpublic sector labor marketsen_US
dc.subject.keywordforeign direct investmenten_US
dc.subject.stwLohndifferenzierungen_US
dc.subject.stwÖffentliches Unternehmenen_US
dc.subject.stwPrivatwirtschaften_US
dc.subject.stwAuslandsniederlassungen_US
dc.subject.stwUngarnen_US
dc.titleOwnership and wages: estimating public-private and foreign domestic differentials using LEED from Hungary, 1986 - 2003en_US
dc.typeWorking Paperen_US
dc.identifier.ppn550246606en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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