Public–private sector wage gap in a group of European countries: an empirical perspective

Sławińska, Kamila

doi:10.1007/s00181-020-01841-3

Cited by 12 publications

(7 citation statements)

References 33 publications

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“…Studies in this stream, however, do not observe if and how job seekers receive and respond to these signals. A large number of studies, notably from economics, use large-scale employment data and examine wage differentials between public and private sectors, with inconclusive evidence (e.g., Choi & Garen, 2021; Murphy et al, 2020; Sławińska, 2021). Other studies investigate how organizational characteristics, and employees’ perceptions thereof, differ across sectors.…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

Comparing Employer Attractiveness of Public Sector Organizations to Nonprofit and Private Sector Organizations: An Experimental Study in Germany and the U.S.

Cordes

Vogel

2022

Review of Public Personnel Administration

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Sector preferences in job choice have rarely been tested empirically across different administrative systems. We address this gap and apply a between-subject experimental design to examine the attractiveness of public, private, and nonprofit employers in two countries in different administrative traditions. Respondents ( n = 362) from an Anglo-Saxon (i.e., the U.S.) and continental European country (i.e., Germany) were exposed to job advertisements that only differed in the employer’s sector affiliation, with other job attributes, such as payment and working hours, held constant. Contrary to expectations, and consistently across the two country samples, respondents evaluated public sector jobs more positively compared to vacancies in the private sector. In contrast, we found no such comparative advantage of public over nonprofit employers. By providing counterevidence to the prevalence of negative attitudes toward public organizations, our study warns against overgeneralizing previous findings on negativity biases to the context of employer attractiveness.

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Section: Literature Review and Hypothesesmentioning

confidence: 99%

Comparing Employer Attractiveness of Public Sector Organizations to Nonprofit and Private Sector Organizations: An Experimental Study in Germany and the U.S.

Cordes

Vogel

2022

Review of Public Personnel Administration

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“…Some countries pay bonuses as part of their additional annual earnings. Although European countries have experienced a decrease in total revenues due to the great recession, arguments still support bonuses due to the changes in workers and job characteristics (Sławińska, 2021 ). If developed countries experienced a decrease in workers’ total earnings, striving for an unclear definition in developing countries would be a lengthy effort for workers with an uncertain outcome.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Designing fair annual bonus formulations for workers: A case study of the state-owned enterprise cement holding in Indonesia

Subiyanto

Kurniawan

2022

Humanit Soc Sci Commun

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A bonus is an additional annual incentive for labour, as part of remuneration package systems, that goes hand-in-hand with a tantième for boards of commissioners and directors. This practical business is common in industrial relations for maintaining a spirit of productivity and loyalty. However, practices to distribute bonuses remain undisclosed and unknown, according to the views of labour. Without an earlier mutual agreement between parties, consisting of labour representatives and management, management unilaterally decides a specific bonus formulation that takes effect immediately. The management ignored suggestions and advice from labour as its partner; worse, there were no discussions between parties in advance. There are no equal labour and management rights to build a better industrial relations climate. We employed mixed methods and conducted multidisciplinary studies to determine cluster and bonus pool allocation with relevant peers to investigate how to build a fair bonus formulation. We adopted a target-based method rather than an outcome-based framework after several exercises. The most important finding is that the bonus formulation, configured from the annual bonus, utilised three underpinning percentiles (P): P-25, P-50, and P-75 implying the lowest, medium, and highest total remuneration for labour, respectively. We determine that success indicators in developing fair bonus formulation stand on how high total remuneration has been achieved by labour towards the median level of peers. The higher the value passed over the median line, the higher the success rate. The present findings contribute to building fair annual bonus formulations in the cement sector; however, other industrial sectors can use them with adequate adjustments.

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“…The wage differential between the private sector and public sector has been studied extensively over the years. In the Nordic countries, the wage differential generally has been found to be to the advantage of the private sector, while the opposite has been found for many European countries further south (Christofides & Michael 2013;Centeno & Portugal 2022;Rattsø & Stokke 2019;Sławińska 2021).…”

Section: Introductionmentioning

confidence: 99%

Analyzing the Public Private Sector Wage Gap Using Difference-in-Differences

Olafsdottir¹,

Ólafsson²

2022

irpa

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This paper estimates the differential between wages in the private and the public sectors using the difference-in-differences method. The method relies on estimating the wage changes of those that move from one sector to the other, that is, from the public sector to the private sector or from the private sector to the public sector. We find that the wages fall by 6-12% between years for those that move from the private sector to the public sector in either 2015 or 2016, while wages increase by 7-10% between years when moving from the public sector to the private sector in either 2015 or 2016.

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Public–private sector wage gap in a group of European countries: an empirical perspective

Cited by 12 publications

References 33 publications

Comparing Employer Attractiveness of Public Sector Organizations to Nonprofit and Private Sector Organizations: An Experimental Study in Germany and the U.S.

Comparing Employer Attractiveness of Public Sector Organizations to Nonprofit and Private Sector Organizations: An Experimental Study in Germany and the U.S.

Designing fair annual bonus formulations for workers: A case study of the state-owned enterprise cement holding in Indonesia

Analyzing the Public Private Sector Wage Gap Using Difference-in-Differences

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