Understanding the public-private sector wage gap in Germany: New evidence from a Fixed Effects quantile Approach∗
Bonaccolto-Töpfer M, Castagnetti C, Prümer S (2022)
Publication Type: Journal article
Publication year: 2022
Journal
Book Volume: 116
Article Number: 106037
DOI: 10.1016/j.econmod.2022.106037
Abstract
The public-private sector wage gap is an important labor market indicator, reflecting sectoral differences in wage and recruitment policies. We provide new evidence on this sectoral gap throughout the wage distribution in Germany. Using data from the German Socio-Economic Panel (1984–2017), we decompose the wage gap and control for unobservable factors that endogenously determine the occupational sector choice. Our estimates confirm the result in the literature that women benefit from working in the public sector. For men, we find that they are unambiguously disadvantaged, with higher remuneration in the private sector across the entire wage distribution. This result contrasts with previous findings in the literature. Moreover, our findings show that taking endogenous selection into account substantially changes the decomposition of the gap, and it is crucial for assessing alternative policy measures.
Authors with CRIS profile
Marina Bonaccolto-Töpfer
Lehrstuhl für Volkswirtschaftslehre, insbesondere Arbeitsmarkt- und Regionalpolitik
Stephanie Prümer
Lehrstuhl für Volkswirtschaftslehre, insbesondere Arbeitsmarkt- und Regionalpolitik
Related research project(s)
Involved external institutions
Italy (IT)How to cite
APA:
Bonaccolto-Töpfer, M., Castagnetti, C., & Prümer, S. (2022). Understanding the public-private sector wage gap in Germany: New evidence from a Fixed Effects quantile Approach∗. Economic Modelling, 116. https://dx.doi.org/10.1016/j.econmod.2022.106037
MLA:
Bonaccolto-Töpfer, Marina, Carolina Castagnetti, and Stephanie Prümer. "Understanding the public-private sector wage gap in Germany: New evidence from a Fixed Effects quantile Approach∗." Economic Modelling 116 (2022).
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