H. Vanophem, A MODIFIED SWITCHING REGRESSION-MODEL FOR EARNINGS DIFFERENTIALS BETWEEN THE PUBLIC AND PRIVATE SECTORS IN THE NETHERLANDS, Review of economics and statistics, 75(2), 1993, pp. 215-224
Using Dutch 1986 data, the wage differentials between public and priva
te sector workers are investigated by employing a variation of the swi
tching regression model. This model imposes fewer identification restr
ictions on the parameters of the model than the standard switching reg
ression model. The estimation results show that some categories of pub
lic sector workers earn substantially less than private sector workers
.