This Policy Note analyzes the wage differential between the public and private sectors, revealing a significant salary premium for government employees of both genders. The wage differential is especially pronounced in the middle of the wage distribution, specifically between the 30th and 60th percentiles. Notably, female workers in the lower to middle-income brackets (10th to 60th percentile) enjoy a larger public wage premium compared to their male counterparts. However, the Note observes that this premium, particularly for those at the lower end of the wage distribution, decreased for both males and females during the implementation of the Salary Standardization Law IV. This narrowing of the public-private wage gap is partly attributed to wage growth in the private sector. Despite these changes, the study concludes that a substantial gap persists, largely due to the nature of exponential adjustments in government salary structures.
