CEPAL Review

Cepal Review is the leading journal for the study of economic and social development issues in Latin America and the Caribbean. Edited by the Economic Commission for Latin America, each issue focuses on economic trends, industrialization, income distribution, technological development and monetary systems, as well as the implementation of economic reform and transfer of technology. Written in English and Spanish (Revista de la Cepal), each tri-annual issue offers approximately 12 studies and essays undertaken by authoritative experts or gathered from conference proceedings.

English Spanish

Wage differentials between the publicand private sectors in Chile: Evidence from longitudinal data

Despite its importance, the literature on wage differentials between public- and privatesectors employees in Latin America is sparse. This article analyses the wage gap between the two sectors in Chile, based on monthly longitudinal data obtained from the Social Protection Survey (eps) for the period 2002-2009. The study takes advantage of the panel structure of the data to control for time-invariant observable and unobservable factors that determine the self-selection of workers between sectors and wages. The results show that the wage differential between workers in the public and private sectors disappears when these factors are controlled for.

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