Public-Private Sector Wage Gap in Ghana: Single Spine Pay Policy to the Rescue?
(2019) NEKP01 20191Department of Economics
- Abstract
- This paper exploits the adoption of Single Spine Pay Policy (SSPP) as a natural experiment to investigate the potency of wage policies in addressing the pay differentials between the public and private sector in Africa. The Government of Ghana in 2010, implemented the SSPP to tackle the long-standing wage gap between the public and private sector and consequently improve productivity in the public sector. Using a quantile treatment estimate of the difference-in-difference research design, I show that the SSPP has a heterogeneous impact in reducing the wage gap. I find that there is no substantial evidence that the public-private wage gap is reduced across the entire distribution on earnings in Ghana. By linking the analysis to... (More)
- This paper exploits the adoption of Single Spine Pay Policy (SSPP) as a natural experiment to investigate the potency of wage policies in addressing the pay differentials between the public and private sector in Africa. The Government of Ghana in 2010, implemented the SSPP to tackle the long-standing wage gap between the public and private sector and consequently improve productivity in the public sector. Using a quantile treatment estimate of the difference-in-difference research design, I show that the SSPP has a heterogeneous impact in reducing the wage gap. I find that there is no substantial evidence that the public-private wage gap is reduced across the entire distribution on earnings in Ghana. By linking the analysis to productivity, I find that the implementation of the SSPP is yet to improve productivity. I particularly uncover evidence that the policy has a negative impact on effort for female workers in the public sector. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8981925
- author
- Duodu, Albert LU
- supervisor
- organization
- course
- NEKP01 20191
- year
- 2019
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- Wage Policy, Wage-Gap, Quantile treatment effect, Difference-in-Difference
- language
- English
- id
- 8981925
- date added to LUP
- 2019-08-08 10:26:08
- date last changed
- 2019-08-08 10:26:08
@misc{8981925, abstract = {{This paper exploits the adoption of Single Spine Pay Policy (SSPP) as a natural experiment to investigate the potency of wage policies in addressing the pay differentials between the public and private sector in Africa. The Government of Ghana in 2010, implemented the SSPP to tackle the long-standing wage gap between the public and private sector and consequently improve productivity in the public sector. Using a quantile treatment estimate of the difference-in-difference research design, I show that the SSPP has a heterogeneous impact in reducing the wage gap. I find that there is no substantial evidence that the public-private wage gap is reduced across the entire distribution on earnings in Ghana. By linking the analysis to productivity, I find that the implementation of the SSPP is yet to improve productivity. I particularly uncover evidence that the policy has a negative impact on effort for female workers in the public sector.}}, author = {{Duodu, Albert}}, language = {{eng}}, note = {{Student Paper}}, title = {{Public-Private Sector Wage Gap in Ghana: Single Spine Pay Policy to the Rescue?}}, year = {{2019}}, }