The Race for Public Sector Employment in Kosovo and Albania: What lies behind it?

December 14, 2016

Authors

Arbëresha Loxha
economic development and welfare policy
Erëza Pula
economics, foreign direct investment, good governance

This Policy Report investigates public-private wage differentials in Kosovo and Albania using data from Kosovo Household Budget Survey 2011 and Albanian Living Standard Measurement Survey 2012. The Oaxaca-Blinder Decomposition technique is employed to determine whether the wage gap is attributable to differences in employees’ characteristics or to differences in remuneration endowments. The empirical methodology follows a three-stage approach in order to address the double sample selection problem arising from non-random selection of labour market participants and employment into public/private sector. Separate wage regressions are estimated for men and women in each country, including selection-correction terms. In order to complement findings along the entire distribution of wages, decomposition technique of quantile and distribution regression-based estimators is utilized. In general, the results suggest that higher wages in the public sector are explained by better characteristics of public employees in both countries, while there is evidence of significant differences in returns only for the lower wage quantiles. To access the Policy Report, please click here.

Policy Reports

The Race for Public Sector Employment in Kosovo and Albania: What lies behind it?

Download PDF 14/12/2016

Share article


Latest Publications

February 12, 2019

Policy Analysis

WeBER PAR Monitor Kosovo 2017 2018 Brief

Related Espresso Insights

August 10, 2018

Espresso.Insights

In anticipation of the European Council decision on opening accession talks…

by GLPS

July 20, 2018

Espresso.Insights

Tight-rope walkers: Trade (un) balance in Kosovo

by GLPS