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This article analyses the public-private pay gap in the Czech Republic using quantile (decomposition) regression. Quantile decomposition analysis showed that all along the distribution, public sector employees are better equipped (have better characteristics) but up from lowest decile, they have worse return on them (lower regression coefficients). Overall earnings are better in the public sector in the lower segments of wage distribution, but worse in the upper. This is due to the effect of coefficients that weigh more heavily upon the effect of characteristics up from the fifteenth percentile.
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