Public-private sector wage differentials in SpainAn updated picture in the midst of the Great Recession

  1. José-Ignacio Antón 1
  2. Rafael Muñoz de Bustillo 2
  1. 1 Johannes Kepler University Linz Department of Economics
  2. 2 Universidad de Salamanca Department of Applied Economics
Aldizkaria:
Investigación económica

ISSN: 0185-1667

Argitalpen urtea: 2015

Alea: 74

Zenbakia: 292

Orrialdeak: 115-157

Mota: Artikulua

DOI: 10.1016/J.INVECO.2015.08.005 DIALNET GOOGLE SCHOLAR lock_openSarbide irekia editor

Beste argitalpen batzuk: Investigación económica

Laburpena

Using the recent Wage Structure Survey 2010, this article examines the public-private sector wage gaps in Spain along the whole earnings distribution and the incidence of the gender gap in both sectors of the economy. Firstly, we find that that there is positive wage premium to public sector employment that is not fully explained by employees' observable characteristics. Furthermore, this premium concentrates on low-skilled workers, while high-skilled individuals in the public sector suffer a pay penalty. Secondly, the gender gap is substantially larger in the private sector. Lastly, we analyse what happens in some specific activities, Education and Human health and social work, where both public and private sector coexist to a large extent. We discuss several explanations for these findings, which are coherent with the available international evidence, and the possible implications of the current process of downsizing of public sector employment associated with austerity measures.

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