In Bhutan, the public sector is usually seen as the most desirable employer. This study asks if this can be attributed to public sector employees receiving higher wages than comparable private sector workers. To answer the question, the study combines an Oaxaca-type decomposition of wage differentials into characteristics and coefficients effects with a multinomial logit model for self-selection into labor force participation and the public or private sector. The study finds that the public/private wage differential is sizeable but can entirely be accounted for by observable characteristics. At the same time, there is strong evidence that preferences for public sector jobs are caused by pronounced intersectoral differences in overall compensation packages, in particular fringe benefits.
Auteurs et éditeurs
Schmillen, Achim D.
World Bank Group (WB)
The World Bank is a vital source of financial and technical assistance to developing countries around the world. We are not a bank in the ordinary sense but a unique partnership to reduce poverty and support development.
Fournisseur de données
World Bank Group (WB)
The World Bank is a vital source of financial and technical assistance to developing countries around the world. We are not a bank in the ordinary sense but a unique partnership to reduce poverty and support development.