Empirical Analysis of Wage Differentials among Public Servants in Nigeria

Description

– Empirical Analysis of Wage Differentials among Public Servants in Nigeria –

Download Empirical Analysis of Wage Differentials among Public Servants in Nigeria. This material is readily available for Economics project students and other related departments who need this as a guide in their project research. 

Abstract

This study investigated wage differentials among public servants in Nigeria with four specific objectives. Both primary and secondary (salary structures) data were used for this study. The work employs a stratified sampling technique in collecting the primary data. We employ the quantile regression and logistic models in our analysis.

Using a sample of 840 employees, in accordance with our theoretical priors, the empirical result supports the standard inverse relationship between wage differential and labour turnover. That as state workers’ wages increase, the probability of a State worker leaving to Federal civil service falls by 0.2901.

Wage differences by gender are well pronounced among the low cadre than high cadre of manpower, in favour of male employees and in favour of females in the middle cadre of manpower. The intergovernmental workers analysis reveals that Bayelsa State workers earn higher than other States selected, including Federal workers.

Introduction

One of the most intriguing issues in labour economics has been the pattern of inter-industry wage differentials. Economists have found a remarkable regularity in wage dispersion within and between countries, even after wages have been controlled for differences in human capital, occupation, and other variables.

These findings suggest that wage differentials are compatible with the functioning of capitalist economies, and thus cast doubt on the appropriateness of competitive theories.

Besides competitive arguments, segmentation arising from efficiency wage models has occupied a central role in the explanation of wage differentials in developed countries, (Garino & Martin, 2007).

The level of wage earning varies due to diversities of human capital, individual innate abilities, job nature and conditions, non-wage benefits from employers, location, etc.

Unexplained wage gaps occur when two people with equal abilities and skills are doing similar jobs but are treated differently by the employer. 

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