TY  - RPRT
        AU  - Heitmueller, Axel
        TI  - Public-Private Sector Wage Differentials in Scotland: An Endogenous Switching Model
        PY  - 2004/Jan/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 992
        UR  - https://www.iza.org/publications/dp992
        AB  - The public-private sector wage gap in Scotland in 2000 is analysed using the extension
sample of the British Household Panel Survey (BHPS). Employing an endogenous switching
model, and testing for double sample selection from the participation decision and sector
choice, the unadjusted wage gap is shown to be 10 per cent for males and 24 per cent for
females. For males this is mainly due to differences in productive characteristics and
selectivity. For females the picture is more ambiguous. Findings also suggest that there
exists a substantial wage premium for male private sector employees. While there is no
evidence of a sample selection bias for females, the sector choice of males is systematically
correlated with unobservables. Furthermore, the structural switching regression indicates that
expected wage differentials between sectors are an important driving force for sectoral
assignment.
        KW  - decomposition
KW  - wage differentials
KW  - double sample selection
KW  - endogenous switching
        ER  -