Wage Differentials Between the Public and Private Sector in India

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 t...

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Main Authors: Glinskaya, Elena, Lokshin, Michael
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2005/04/5772058/wage-differentials-between-public-private-sector-india
http://hdl.handle.net/10986/8987
id okr-10986-8987
recordtype oai_dc
spelling okr-10986-89872021-04-23T14:02:42Z Wage Differentials Between the Public and Private Sector in India Glinskaya, Elena Lokshin, Michael AGRICULTURAL OCCUPATIONS ANNUAL RATE AREAS AVERAGE AGE CASUAL WORKERS CIVIL SERVANTS CONSTRUCTION INDUSTRY CONSTRUCTION WORKERS DEVELOPMENT POLICY ECONOMIC ACTIVITIES ECONOMIC MANAGEMENT ECONOMISTS EDUCATION LEVEL EMPIRICAL ANALYSIS EMPLOYMENT FAMILY WORKERS GOVERNMENT EMPLOYEES HOUSEHOLD SURVEY HOUSING HUMAN CAPITAL INCOME INDUSTRIAL WORKERS INFORMAL EMPLOYMENT INFORMAL SECTOR INFORMAL SECTORS INSURANCE LABOR FORCE LABOR FORCE PARTICIPATION LABOR MARKET LEGISLATION MARGINAL PRODUCTIVITY MEDIA MEDICAL CARE MIGRATION MINIMUM WAGE MINIMUM WAGES NATURAL RESOURCES NON-AGRICULTURAL ACTIVITIES OCCUPATIONS PARTNERSHIP PERSONNEL POLICY IMPLICATIONS POLICY RESEARCH POLICY REVIEW POVERTY LINE POVERTY REDUCTION PRIMARY SCHOOL PRIVATE SECTOR PRIVATE SECTOR WORKERS PRIVATE SECTORS PRODUCTIVITY PUBLIC ENTERPRISES PUBLIC POLICY PUBLIC SECTOR REAL WAGES REDUCING POVERTY REPRESENTATIVE SAMPLE REPRESENTATIVE SURVEY RETIREMENT RURAL AREAS SECTOR EMPLOYMENT SELF-EMPLOYED SKILLED WORKERS TECHNICAL PERSONNEL UNEMPLOYMENT UNEMPLOYMENT RATES URBAN URBAN AREAS WAGE DIFFERENTIALS WAGES WORK IN PROGRESS WORKERS 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. The authors' review of wage differentials (estimated using similar methodologies) across the world shows that India has one of the largest differentials between wages of public workers and workers in the formal private sector. The wage differentials in India tend to be higher in rural as compared with urban areas, and are higher among women than among men. The wage differential also tends to be higher for low-skilled workers. There is considerable evidence of an increase in the wage differential between 1993-94 and 1999-2000. 2012-06-25T22:15:18Z 2012-06-25T22:15:18Z 2005-04 http://documents.worldbank.org/curated/en/2005/04/5772058/wage-differentials-between-public-private-sector-india http://hdl.handle.net/10986/8987 English Policy Research Working Paper; No. 3574 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research South Asia India
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic AGRICULTURAL OCCUPATIONS
ANNUAL RATE
AREAS
AVERAGE AGE
CASUAL WORKERS
CIVIL SERVANTS
CONSTRUCTION INDUSTRY
CONSTRUCTION WORKERS
DEVELOPMENT POLICY
ECONOMIC ACTIVITIES
ECONOMIC MANAGEMENT
ECONOMISTS
EDUCATION LEVEL
EMPIRICAL ANALYSIS
EMPLOYMENT
FAMILY WORKERS
GOVERNMENT EMPLOYEES
HOUSEHOLD SURVEY
HOUSING
HUMAN CAPITAL
INCOME
INDUSTRIAL WORKERS
INFORMAL EMPLOYMENT
INFORMAL SECTOR
INFORMAL SECTORS
INSURANCE
LABOR FORCE
LABOR FORCE PARTICIPATION
LABOR MARKET
LEGISLATION
MARGINAL PRODUCTIVITY
MEDIA
MEDICAL CARE
MIGRATION
MINIMUM WAGE
MINIMUM WAGES
NATURAL RESOURCES
NON-AGRICULTURAL ACTIVITIES
OCCUPATIONS
PARTNERSHIP
PERSONNEL
POLICY IMPLICATIONS
POLICY RESEARCH
POLICY REVIEW
POVERTY LINE
POVERTY REDUCTION
PRIMARY SCHOOL
PRIVATE SECTOR
PRIVATE SECTOR WORKERS
PRIVATE SECTORS
PRODUCTIVITY
PUBLIC ENTERPRISES
PUBLIC POLICY
PUBLIC SECTOR
REAL WAGES
REDUCING POVERTY
REPRESENTATIVE SAMPLE
REPRESENTATIVE SURVEY
RETIREMENT
RURAL AREAS
SECTOR EMPLOYMENT
SELF-EMPLOYED
SKILLED WORKERS
TECHNICAL PERSONNEL
UNEMPLOYMENT
UNEMPLOYMENT RATES
URBAN
URBAN AREAS
WAGE DIFFERENTIALS
WAGES
WORK IN PROGRESS
WORKERS
spellingShingle AGRICULTURAL OCCUPATIONS
ANNUAL RATE
AREAS
AVERAGE AGE
CASUAL WORKERS
CIVIL SERVANTS
CONSTRUCTION INDUSTRY
CONSTRUCTION WORKERS
DEVELOPMENT POLICY
ECONOMIC ACTIVITIES
ECONOMIC MANAGEMENT
ECONOMISTS
EDUCATION LEVEL
EMPIRICAL ANALYSIS
EMPLOYMENT
FAMILY WORKERS
GOVERNMENT EMPLOYEES
HOUSEHOLD SURVEY
HOUSING
HUMAN CAPITAL
INCOME
INDUSTRIAL WORKERS
INFORMAL EMPLOYMENT
INFORMAL SECTOR
INFORMAL SECTORS
INSURANCE
LABOR FORCE
LABOR FORCE PARTICIPATION
LABOR MARKET
LEGISLATION
MARGINAL PRODUCTIVITY
MEDIA
MEDICAL CARE
MIGRATION
MINIMUM WAGE
MINIMUM WAGES
NATURAL RESOURCES
NON-AGRICULTURAL ACTIVITIES
OCCUPATIONS
PARTNERSHIP
PERSONNEL
POLICY IMPLICATIONS
POLICY RESEARCH
POLICY REVIEW
POVERTY LINE
POVERTY REDUCTION
PRIMARY SCHOOL
PRIVATE SECTOR
PRIVATE SECTOR WORKERS
PRIVATE SECTORS
PRODUCTIVITY
PUBLIC ENTERPRISES
PUBLIC POLICY
PUBLIC SECTOR
REAL WAGES
REDUCING POVERTY
REPRESENTATIVE SAMPLE
REPRESENTATIVE SURVEY
RETIREMENT
RURAL AREAS
SECTOR EMPLOYMENT
SELF-EMPLOYED
SKILLED WORKERS
TECHNICAL PERSONNEL
UNEMPLOYMENT
UNEMPLOYMENT RATES
URBAN
URBAN AREAS
WAGE DIFFERENTIALS
WAGES
WORK IN PROGRESS
WORKERS
Glinskaya, Elena
Lokshin, Michael
Wage Differentials Between the Public and Private Sector in India
geographic_facet South Asia
India
relation Policy Research Working Paper; No. 3574
description 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. The authors' review of wage differentials (estimated using similar methodologies) across the world shows that India has one of the largest differentials between wages of public workers and workers in the formal private sector. The wage differentials in India tend to be higher in rural as compared with urban areas, and are higher among women than among men. The wage differential also tends to be higher for low-skilled workers. There is considerable evidence of an increase in the wage differential between 1993-94 and 1999-2000.
format Publications & Research :: Policy Research Working Paper
author Glinskaya, Elena
Lokshin, Michael
author_facet Glinskaya, Elena
Lokshin, Michael
author_sort Glinskaya, Elena
title Wage Differentials Between the Public and Private Sector in India
title_short Wage Differentials Between the Public and Private Sector in India
title_full Wage Differentials Between the Public and Private Sector in India
title_fullStr Wage Differentials Between the Public and Private Sector in India
title_full_unstemmed Wage Differentials Between the Public and Private Sector in India
title_sort wage differentials between the public and private sector in india
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2005/04/5772058/wage-differentials-between-public-private-sector-india
http://hdl.handle.net/10986/8987
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