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Citation Information

Type Journal Article - The Review of Economics and Statistics
Title A switching regression model for wage determinants in the public and private sectors of a developing country
Volume 70
Issue 2
Publication (Day/Month/Year) 1988
Page numbers 244-5
URL http://econpapers.repec.org/RePEc:tpr:restat:v:70:y:1988:i:2:p:244-52
Governments in less developed countries face severe budgetary constraints. Given that public sector employment is a large part of modern sector employment, the government wage bill h as come under increased scrutiny. The central question is how do gove rnment wages compare with those in the private sector? In this paper, the authors develop and estimate a model to answer this question. An important aspect of this model is the endogenous treatment of sector choice. The estimation results (full information maximum likelihood) sound a strong warning against the use of ordinary least squares est imates that are based on sector-specific samples. Data are from the I vory Coast. Copyright 1988 by MIT Press.

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