Government wage differentials for women: do city dwellers earn more?

Abstract

Previous research has shown that female workers, unlike other minorities, continue to earn a wage premium in the US public sector. We examine the nature of government wage differentials for female workers separately for city dwellers and non-city dwellers. A bivariate selectivity approach is used which recognizes the endogeneity of the government worker status variable and the union choice variable in the wage formation process. The public sector wage premium is found to be higher for city dwellers than non-city dwellers, pointing to the role of political influence in the government wage setting process.