Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/183175
Authors: 
Tansel, Aysit
Keskin, Halil Ibrahim
Ozdemir, Zeynel Abidin
Year of Publication: 
2018
Series/Report no.: 
GLO Discussion Paper 260
Abstract: 
This paper considers the public and private sector wage earners in Egypt and examines their wage distribution during 1998-2012 using Egyptian Labor Market Panel Survey. We estimate the public-private sector wage gap with Mincer wage equations both at the mean and at different quantiles of the wage distribution. In this process we take into account observable and unobservable characteristics of the individuals using the panel feature of the data with a fixed effects model. We address sector of employment selection issue for both males and females. We find that there is very little evidence of sample selection in our data. Therefore, we present both the selection corrected results and the results with no selection correction. We find a persistent public sector wage penalty for males and public sector wage premium for females in the face of extensive sensitivity checks. They are larger when unobserved heterogeneity is taken into account for males but insignificant for females. They are similar across the quantiles for males but, smaller at the top than at the bottom of the conditional wage distribution for females. We further examine the public sector wage gap over time and in different sub-groups according to age and education. The public sector wage penalty for males has decreased recently over time and is larger for the better educated and younger. We also find substantial regional differences in public sector wage gap for males.
Subjects: 
Public Sector
Private Sector
Wage Gap
Gender
Sample Selection
Quantile Regression
Panel Data
Egypt
JEL: 
C21
C23
J16
J31
J45
Document Type: 
Working Paper
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