The Effect of Public Sector Employment on the Earnings of White and African American Males: A Sample Selectivity Approach

Abstract

This research note uses a sample selection model to measure the earnings premium (or penalty) to public sector employment. A model correcting for both labor force participation and sectoral choice is estimated for both white and African American males. Results indicate that African American males are no better off in the public than in the private sector. Moreover, white males employed in the public sector earn significantly less than their private sector counterparts.