Union Worker Wage Effect in the Public Sector

This study examines union wage premiums in the public sector for the 1998–2004 period. Unlike previous studies, our approach estimates union wage premiums considering differences in the rewards to education, experience, and other personal characteristics for union and non-union workers. The approach provides a larger estimated wage gap than the traditional approach, and allows for simulations of union–nonunion wage gaps for different types of workers. Moreover, we use an Oaxaca decomposition to explain the larger union–nonunion wage gap in the private sector in comparison to that in the public sector. We find that between 50% and 60% of the difference in union wage premiums between the private and public sectors is due to differences in the way unionized workers are rewarded in the private and public sectors, while the remaining portion is due to differences in personal characteristics of private and public sector workers.

A new flexible hazard rate distribution: Application and estimation of its parameters

We introduce a new class of flexible hazard rate distributions which have constant, increasing, decreasing, and bathtub-shaped hazard function. This class of distributions obtained by compounding the power and exponential hazard rate functions, which is called the power-exponential hazard rate distribution and contains several important lifetime distributions. We obtain some distributional properties of the new family of distributions. The estimation of parameters is obtained by using the maximum likelihood and the Bayesian methods under squared error, linear-exponential, and Stein’s loss functions. Also, approximate confidence intervals and HPD credible intervals of parameters are presented. An application to real dataset is provided to show that the new hazard rate distribution has a better fit than the other existing hazard rate distributions and some four-parameter distributions. Finally , to compare the performance of proposed estimators and confidence intervals, an extensive Monte Carlo simulation study is conducted.