A Comparative Analysis of Public Private Wages in Somalia: An Evaluation of Wage Differentials

Abstract

This paper aims to comparatively analyze public private wage differentials in Mogadishu, Somalia. The secondary data used in this study is derived mainly from documents analysis such as national wage and salary structure for public servants and the payroll data of some selected private companies and of both and nonprofit organizations in Mogadishu, Somalia. The study is particularly significant because it is the first of its kind in Somalia aimed at analyzing and comparing wages between public and private sector in Somalia. The finding of the analysis indicates earning gap exist between public, not for profit organization and that of private sector and specifically the earning gap is significant among employees working in not for profit organizations and those in private sector. Furthermore, the study also shows the existence of wage differentials within each sector itself. Finally, the study suggests some policy recommendations that are useful in solving the wage differentials.

Keywords: Wage differentials, earning gap, Somalia,