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Does Indonesia have a "low-pay" civil service?, Volume 1
Author:Filmer, Deon; Lindauer, David L.; Country:Indonesia;
Date Stored:2001/07/28Document Date:2001/06/30
Document Type:Policy Research Working PaperSubTopics:Knowledge Economy; National Governance; Parliamentary Government; Health Monitoring & Evaluation; Education for the Knowledge Economy; Public Health Promotion; Decentralization
Language:EnglishMajor Sector:Public Administration, Law, and Justice
Region:East Asia and PacificReport Number:WPS2621
Sub Sectors:Civil Service ReformCollection Title:Policy, Research working paper ; no. WPS 2621
Volume No:1  

Summary: Government officials and polcy analysts maintain that Indonesia's civil servants are poorly paid and have been for decades. This conclusion is supported by anecdotal evidence and casual empiricism. The authors systematically analyze the realtionship between government and private compensation levels using data from two large household surveys carried out by Indonesia's Central Bureau of Statistics: the 1998 Sakernas and 1999 Susenas. The results suggest that government workers with a high school education or less, representing three-quarters of the civil service, earn a pay premium over their private sector counterparts. Civil servants with more than a high school education earn less than they would in the private sector but, on average, the premium is far smaller than commonly is alleged and is in keeping with public/private differentials in other countries. These results prove robust to varying econometric specifications and cast doubt on low pay as an explanation for government corruption.

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