Budapest Working Papers on the Labour Market BWP - 2013/2
The share of female workers is significantly higher i the public than the private sector. This could be due to several reasons: different preferences towards job characteristics, or perhaps to lower discrimination against women in the public sector due to strict wage grids and hiring and promotional practices. Lower discrimination may manifest itself in the gender wage gap or in the higher ratio of women in management positions, however, there are no precise estimates available regarding the size of the differences in these measures between the two sectors. This study examines whether discrimination is smaller, and thus women's opportunities are better, in the public sector, or whether - despite the standardization of rules - discrimination appears through alternative channels. The results suggest that the public sector gender wage gap is significant, but 7-8% lower. Occupational segregation explains only a small part of the gap in both sectors. Women with equivalent observable characteristics suffer a small (2%) disadvantage in terms of the probability of reaching a management position in the private sector, while their chances appear to be more equal in the public sector.
public and private sector gender wage gap vertical occupational segregation