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We don't think that this combination of earnings downgrades and high charges can sustain a sector premium rating.
Reassuringly, in unreported regressions, we find the same pattern, both when they are working and when they are retired, as in the baseline samples, that is, there is a significant public sector premium, which disappears once we control for education and occupation.
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For instance, the bottom 20% of the population contributes 3.85% of their consumption expenditure as informal sector premiums while the top 20% contributes only 0.27% [ 25].
However, the disadvantages of maintaining the current system include: The collection of premiums from the informal sector in Ghana is time-consuming, expensive and sometimes associated with fraud on the part of premium collectors [ 25], yet informal sector premiums only constitute about 5% of NHIS revenue [ 20].
Maybe the public-sector premium arises from an incentive problem and hence higher public-sector pay can be used as an indicator of poor quality in this sector.UGO PANIZZAInter-American Development BankWashington, DCSIR Your survey on pay omitted one important aspect.
The scheme is mandatory for foreign workers in all sectors (premiums paid by employer or worker), but it is optional for house helpers and plantation workers (whose premiums must still be paid by employers).
It's cost effective, good for patients and it doesn't require the private sector, at premium rates, to fix problems with a machine that is on its last legs.
Note that the formal sector wage premium is not signed.
Details for the construction of the public sector wage premium are in the Appendix.
As already noted, Greece tops the list in Fig. 2, with considerably higher public sector wage premium.
Note also that Spain and Portugal also rank very high on this list.9 Fig. 2 Public sector wage premium (WPR, median 1970 2010).
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