Wage spillovers between the public and corporate sectors

Telegdy, Álmos (2014) Wage spillovers between the public and corporate sectors. In: The Hungarian labour market, 2014. Centre for Economic and Regional Studies, Hungarian Academy of Sciences; National Employment Non-profit Public Company, Budapest, pp. 70-78.

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Abstract

The dataset used in this study is the Hungarian Wage Tariff Survey Data, hosted by the National Employment Office. It provides yearly information on workers’ year of birth, gender, highest level of education, occupation, earnings, tenure and type of contract (corporate and two types of public sector labor relation, as discussed below). These data are recorded for May of a given year. I use the years between 1998 and 2006 in this chapter as the public wage in - crease took place in the middle of this period. I keep in the sample only full time employees between 18 and 60 years. The police, military, firemen and border guards are not included in the public sec - tor data, and I excluded the legal professions as their employment relation is regulated by a special law and they were not subject to the wage increase. The final sample includes 379–487 thousand public sector employees and 106–153 thousand corporate workers. The comparison of the sample and the popula - tion data reveals that the sample of corporate and public sector employees is about 7–8 and 70 per cent, respectively.

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