Sector choice, multiple job holding and wage differentials: Evidence from Poland

This article uses data from Poland to investigate the role played by wage differentials, between the public and private sectors, in influencing sector choice and the decision to moonlight. Standardising for worker characteristics and allowing for sector selection effects, we find (i) a substantial private sector wage premium, (ii) wage differentials are a significant determinant of sector choice, and (iii) the desire to moonlight is particularly strong among those who face the greatest wage gap, that is, university educated employees.