PUBLIC-PRIVATE WAGE GAP: THE EFFORT OF THE PRIVATE SECTOR TO ATTRACT, MOTIVATE AND RETAIN QUALIFIED STAFF IN KOSOVO

Abstract

This paper contributes to the understanding of the wages gap from a transition economy. The paper aims to provide an extensive overview of the recent research on the public-private wage gap in Kosovo for the period 2012-2016 and to explore its effect on labor market efficiency and some macroeconomic indicators. As other countries that went through the transition phase, the public-sector wages at the beginning of transition phase were lower compared to the private sector in Kosovo, later this gap shifts in the advantage of the public sector at the maturity stages of transition in Kosovo thus making the public sector the desirable employer. Therefore, recruitment, retention and motivation of highly qualified human resources nowadays represent the toughest challenge for the private sector. Hence, this paper provides the employer's efforts in the private sector to attract and retain highly professional staff in Kosovo.