Public-Private-Sector Employment Decisions and Wage Differentials in Peninsular Malaysia

This paper examines whether there is a wage premium for public-sector workers in Peninsular Malaysia and whether there is wage discrimination based on gender. Public- and private-sector wages are estimated using individual-level data from 1995 and 2007 while accounting for sectoral choice by men and women. I find that public-sector employees earn a wage premium, independent of their human capital endowments and personal attributes. This wage premium has increased over the twelve-year period. There is little evidence of a gender wage gap in the public sector; a gender wage gap is more evident in the private sector.