The gender wage gap in the public and private sectors: The Spanish experience

Abstract

Using microdata from the Wage Structure Survey, we analyse the gender wage gap in the private and public sectors, considering the whole wage distribution. The main contribution is to assume that the decision to work in a sector is a prior process determined endogenously in the model. Thus, the usual Ordinary Least Square estimation is inconsistent, and it is necessary to use alternative techniques. We use quantile regression techniques to calculate how much of the gap is due to differences in returns between men and women and sectors, taking into account the sample selection bias. We find that the size of the gap attributed to different returns varies substantially across the wage distribution. Public sector employees are paid higher wages, on average, than their counterparts in the private sector, and the gap is wider for women. Moreover, the proportion of the gender wage gap explained (by different characteristics) tends to be greater for workers who are at the bottom of the wage distribution in both sectors. A look at the whole wage distribution reveals that discrimination in the gender wage gap is typically higher at its top than at its bottom, suggesting that glass ceilings are more prevalent than sticky floors for both men and women.