Wage differentials between the public and private sectors in India

Download or read book Wage differentials between the public and private sectors in India written by Elena E. Glinskaya and published by World Bank Publications. This book was released on 2005 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: The authors use 1993-94 and 1999-2000 India Employment and Unemployment surveys to investigate wage differentials between the public and private sectors as well as workers' decisions to join a particular sector. To obtain robust estimates of the wage differential, they apply three econometric techniques each relying on a different set of assumptions about the process of job selection. All three methods show that differences in wages between public sector workers and workers in the formal-private and informal-casual sectors are positive and high. Estimates show that, on average, the public sector premium ranges between 62 percent and 102 percent over the private-formal sector, and between 164 percent and 259 percent over the informal-casual sector, depending on the choice of methodology.