Do public sector workers earn a wage premium in Djibouti and are the returns to education different across the sectors? The authors estimate private and public sector wage earning using 1996 household survey data, while controlling for selectivity using Heckman's two stage approach. They find that Djiboutian public sector employees earn a wage premium, independent of their personal attributes and human capital endownments, and are more likely to be males and have parents in the public sector. |