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Separate earnings functions for public and private sector by gender are estimated for Greece with appropriate correction for selectivity bias, using Family Expenditure Survey data for 1988. Then a comparison of the average pay, that would be received by public and private sector employees if they were paid according to the same pay structure, is undertaken. The empirical evidence suggests that, while the observed pay advantage of male public sector employees is rather explained by higher qualifications, in the case of women qualification differences partly explains the observed public-private wage differential.