Overpaid Clerks, Underpaid Managers: Estimates of Public-Private Sector Wage Gap in the Philippines
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Creator Rosechin Olfindo
Title Overpaid Clerks, Underpaid Managers: Estimates of Public-Private Sector Wage Gap in the Philippines
Publisher Faculty of Economics, Chulalongkorn University
Publication Year 2561
Journal Title Southeast Asian Journal of Economics
Journal Vol. 6
Journal No. 1
Page no. 23-41
Keyword public-private wage gap, wage differentials, civil service, developing countries, Philippines
URL Website http://www.econ.chula.ac.th/public/publication/journal/sajehome.php
Website title Southeast Asian Journal of Economics
ISSN 2465-5120
Abstract Public sector employment is often viewed as a good jobwell-paidand secure. Most studies find that public sector employees enjoy a wagepremium over their private sector counterparts. Using data from the Philippines,this article differentiates employees into managers and administrative employees,and finds that the public sector wage premium is largest among administrativeworkers in the highest pay scale, followed by managers in the middle payscale. The estimates are derived using the most common techniques in theliterature. While the magnitude of the wage premium varies depending on themethod used, the order of who benefits the most from public sector employmentremains consistent across methodologies. These findings imply that managersare likely to leave the public sector after they have reached the middle payscale, while the administrative employees are likely to remain longer to reachthe highest pay scale and enjoy the largest wage premium.
Southeast Asian Journal of Economics

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