Determinants of Wage Earnings in Uganda

The study investigates the factors that influence the wage earnings in the public and private sectors in Uganda in the economic reform period, using the household survey data for 1992-93, 1999-2000 and 2002-03. The results suggest that wage earnings are positively and significantly influenced by the level of education, age, geographical location, and the economic sector of employment. This study uses the Mincerian-type wage model to calculate the share of individual endowments and their impact along with the selection effect in explaining the wage differentials between the public and private sectors. The findings of this study suggest that the differences in educational attainment in the reform period have played a very important role in widening the public sector – private sector wage gap. The results are consistent with empirical literature obtained from other developing countries.