Government Wage Differentials by Sex

Abstract

A model is presented for estimating a human-capital wage-rate function that accounts for the effects of differences in the strength of attachment to the labor force on the incentives to invest in human capital without requiring detailed information on work history. Using data from the May 1973 Current Population Survey tape, this model is estimated on all males and on all females to study differences in differentials between sexes and between the public and private sectors. The results suggest that sex is an important source of differences in government differentials. Women appear to enjoy a premium in wages as a result of government employment, and this premium increases with the level of government.

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