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Schooling and the distribution of wages in the European private and public sectors

[journal article]

Budria, Santiago

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Abstract International research has shown that schooling enhances within-groups wage dispersion. This assessment is typically based on private sector data and, up to date, the inequality implications of schooling have not been documented for the public sector. This paper uses recent data from eight European countries to explicitly take into account differences between the private and public sectors. Using quantile regression, the paper describes the effects of schooling on the location and shape of the conditional wage distribution in each sector. While the average impact of schooling on wages is similar across sectors, the impact of schooling on within-groups dispersion is found to be substantially larger in the private sector than in the public sector. This finding warns that the effects of the European educational expansion on overall within-groups dispersion may be lower than previously thought.
Keywords level of education attained; returns on education; EU; wage; wage difference; private sector; public sector; distribution
Classification Sociology of Economics; Sociology of Education; Labor Market Research
Free Keywords returns to schooling; quantile regression; within-groups wage inequality
Document language English
Publication Year 2010
Page/Pages p. 1045-1054
Journal Applied Economics, 42 (2010) 8
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)