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An Analysis of Public- and Private-Sector Wages Allowing for Endogenous Choices of Both Government and Union Status

Joseph Gyourko^1,2; Joseph Tracy^1,3

¹ National Bureau of Economic Research · ² University of Pennsylvania · ³ Federal Reserve Bank of Dallas

A general selection model is estimated in which workers select across four labor markets-private/nonunion, privat e/union, public/nonunion, and public/union. Evidence is found of posi tive selection bias in the private/nonunion sector and of negative se lection bias in the public/union sector. Union wage differentials in the public and private sectors as well as public/private wage differe ntials are contrasted. The authors discuss when it is appropriate to use each type of differential. Copyright 1988 by University of Chicago Press.

DOI

10.1086/298182

Volume

6 (2)

Pages

229-253

Language

en

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BibTeX

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