Wage differentials between the public and private sectors

Pederson, P.J.; Schmidt-Sørensen, Jan Beyer; Smith, Nina; Westergård-Nielsen, Niels

doi:10.1016/0047-2727(92)90059-o

Cited by 53 publications

(35 citation statements)

References 6 publications

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“…Although most studies concentrate on US data, similar results are obtained for other countries (e.g. Pederson et al, 1990;Hartog and Oosterbeek, 1993;Melly, 2005;Gorodnichenko and Peter, 2007).…”

Section: Introductionsupporting

confidence: 65%

“…In order to operationalize equation (4), we employ a dummy variable approach which is standard for detecting wage differentials between subgroups in empirical labor economics (see e.g. Pederson et al, 1990;Kunze, 2005). As it is common, instead of estimating the model in levels, we use the log of Y i , which gives the following Mincerian earnings equation (Mincer, 1974) to be estimated using ordinary least squares (OLS):…”

Section: Ordinary Least Squaresmentioning

confidence: 99%

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The politicians’ wage gap: insights from German members of parliament

2012

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Using a unique dataset of German members of parliament (MPs) this paper analyzes the politicians' wage gap (PWG). After controlling for observable characteristics as well as accounting for election probabilities and campaigning costs, we find a positive income premium for MPs which is statistically and economically significant. Our results are consistent with the citizen candidate model: The PWG amounts to 35-65% when comparing MPs to citizens in an executive position. However, it shrinks to zero when restricting the control group to top-level executives. This suggests that German politicians do not receive excessive pay when compared to senior executives.JEL Classification: D72, H11, H83, J31, J45

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Section: Introductionsupporting

confidence: 65%

Section: Ordinary Least Squaresmentioning

confidence: 99%

The politicians’ wage gap: insights from German members of parliament

2012

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“…For Europe, a number of studies chart and explain the public-private sector pay gap. These include (Petersen et al 1990) for Denmark, Hartog and Oosterbeek (1993) and Van Ophem (1993) for the Netherlands, Dustmann and Van Soest (1998) and Melly (2005) for Germany, Christofides and Pashardes (2002) for Cyprus, Bargain and Melly (2008) for France, Adamchik and Bedi (2000) and Fallaris (2004) for transition economies, and numerous authors for the UK (e.g. Rees and Shah (1995), Blackaby et al (1999), and Heitmueller (2006)).…”

Section: Literature Reviewmentioning

confidence: 99%

Exploring the public-private sector wage gap in European countries

Christofides

Michael

2013

IZA J Labor Stud

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We estimate the public-private sector pay gap for 27 European countries, using the 2008 EU SILC. The coefficients of conditional (on personal and job characteristics) public sector controls give a first impression on wage differences, while decompositions into explained and unexplained components (also accounting for selectivity) allow for a more complete analysis, which helps to identify possible causes of the gap. Regional patterns exist. Separate subsample decompositions based on age, education, gender and occupation, provide interesting insight regarding the pay structure of each country. Quantile decomposition analyses show that the public-private pay gap is, generally, negatively related to income quantiles. JEL classification: J31, J45, J48

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“…Few researchers have explored the public/private earnings gap in cross-national perspective, mostly due to the long-standing lack of comparable data. Nevertheless, a few studies indicate that public-sector workers tend to earn more than do their private-sector counterparts in a range of countries (Bardasi 1996;Heller and Tait 1983;OECD 1994;Pedersen et al 1990;Rose 1985).…”

mentioning

confidence: 99%

“…These pressures have resulted in a leveling of public-sector employment and a reduction in the earnings of public-sector workers (Pedersen et al 1990;OECD 1994). Thus, we expect that these forces will tend to reduce public-sector earnings in the states with the highest levels of public-sector employment.…”

mentioning

confidence: 99%

Gender, the Welfare State, and Public Employment: A Comparative Study of Seven Industrialized Countries

Gornick¹,

Jacobs²

1998

American Sociological Review

168

100

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in A Comparative Study of Seven Industrialized Countries AbstractThis paper explores the influence of government employment on the gender gap in earnings in seven countries, using data from the Luxembourg Income Study (LIS). We raise and answer four questions about the effects of public sector employment on the gender gap in earnings. (1) Do governments offer jobs that are comparatively high paying? (2) Does public employment benefit some workers, such as low-paid workers, more than others? (3) Are public sector employment advantages explained by differences in worker characteristics and the occupational mix? (4) Finally, what is the effect of public employment --its extent and its pay structure --on gender gaps in earnings? The results indicate marked variation across liberal, conservative, and social democratic welfare states, but reveal a number of uniformities as well. We find that public-sector workers earn more, on average, than those working in the private sector in most countries in our sample, and most earnings advantages are concentrated on the lower end of the earnings distribution. Generally, a large share of the public/private earnings differential --especially in the social democratic and conservative countries --is explained by sectoral differences in worker characteristics and occupation. The effect of public employment on the overall gender gap in earnings is limited in most countries. We discuss the implications of these results for theory and research on gender and the welfare state.

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Wage differentials between the public and private sectors

Cited by 53 publications

References 6 publications

The politicians’ wage gap: insights from German members of parliament

The politicians’ wage gap: insights from German members of parliament

Exploring the public-private sector wage gap in European countries

Gender, the Welfare State, and Public Employment: A Comparative Study of Seven Industrialized Countries

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