0000000000354699
AUTHOR
Karlis Vilerts
The public–private sector wage gap in Latvia
This study investigates the public-private sector wage gap in Latvia using microdata from the labour force survey. The severity of public sector wage cuts employed as a response to the economic crisis and subsequent recovery provides a test bed to analyse whether and how the public-private sector wage gap has adjusted after consolidation-driven wage cuts. Findings reveal that the observed wage gap is slightly in favour of the public sector; however, once differences in individual characteristics and selection effects are considered, results point to a private sector wage premium. Findings also suggest that the private sector wage premium has increased since the pre-crisis period. A signific…
Public sector wage premium and output volatility in the European Union
This study seeks to uncover the role played by the public sector wage premium in explaining the output volatility. Furthermore, the study also explores the factors that might substantiate the cross-country differences in the volatility of the public sector wage premium. Using cross-sectional regression analysis for the European Union countries, the findings indicate that more volatile public sector wage premium is associated with higher fluctuations in the private sector employment and less stable growth. Findings also suggest that volatility of the public sector wage premium tends to be larger in countries with smaller governments and in countries where collective bargaining is the predomi…
Returns To Education During And After The Economic Crisis: Evidence From Latvia 2006–2012
We employ EU-SILC micro data for Latvia to study how returns to education changed during the economic crisis of 2008–2009 and afterwards. We found that returns to education increased significantly during the crisis and decreased slightly during the subsequent economic recovery. The counter-cyclical effect was evident in nearly all population groups. After the crisis, education became more associated than before with a longer working week and a higher employment probability. Furthermore, we show that returns to education in Latvia are generally higher in the capital city and its suburbs than outside the capital city region, as well as for citizens of Latvia than for resident non-citizens and…
Can Differences in Characteristics Explain Ethnic Wage Gap in Latvia?
Abstract We used anonymized micro data from Labour Force Survey to estimate the ethnic wage gap in Latvia and find the factors that explain it. We found that a notable ethnic wage gap still exists in Latvia with non-Latvians earning 10 % less than Latvians in 2015. The results of Oaxaca-Ransom decomposition show that approximately two thirds of the ethnic wage gap are explained by differences in characteristics with the most important effects in favour of Latvians caused by segregation in better paying occupational groups, having Latvian citizenship and better education (higher education levels and more favourable segregation by education fields). This was partly offset by favourable segreg…