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The Public Sector Pay Gap In France, Great Britain And Italy

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Author Info
Claudio Lucifora
Dominique Meurs

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Abstract

We investigate public-private pay determination using French, British and Italian microdata. While traditional methods focus on parametric methods to estimate the public sector pay gap, in this paper, we use both non-parametric (kernel) and quantile regression methods to analyze the distribution of wages across sectors. We show that the public-private (hourly) wage differential is sensitive to the choice of quantile and that the pattern of premia varies with both gender and skill. In all countries the public sector is found to pay more to low skilled workers with respect to the private sector, whilst the reverse is true for high skilled workers. When comparing results across countries, we find that where pay formation is more regulated (i.e. as in France and Italy) the public sector pay gap is smaller; whilst where market factors play a larger role in pay determination (i.e. as in Great Britain) the public sector pay gap is larger-particularly in the lower part of the wage distribution-and females are much better off in the public sector as compared to the private sector. Copyright 2006 Blackwell Publishing Ltd.

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File URL: http://www.blackwell-synergy.com/links/doi/10.1111/j.1475-4991.2006.00175.x/enhancedabs
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Article provided by Blackwell Publishing in its journal Review of Income and Wealth.

Volume (Year): 52 (2006)
Issue (Month): 1 (03)
Pages: 43-59
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Handle: RePEc:bla:revinw:v:52:y:2006:i:1:p:43-59

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Gerry Boyle & Rory McElligott & Jim O'Leary, 2004. "Public-Private Wage Differentials in Ireland, 1994-2001," Economics, Finance and Accounting Department Working Paper Series n1421004, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth. [Downloadable!]
  2. Carlo Dell’Aringa & Claudio Lucifora & Federica Origo, 2005. "Public Sector Pay and Regional Competitiveness: A First Look at Regional Public-Private Wage Differentials in Italy," IZA Discussion Papers 1828, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Asma Hyder & Barry Reilly, 2005. "The Public Sector Pay Gap in Pakistan: A Quantile Regression Analysis," PRUS Working Papers 33, Poverty Research Unit at Sussex, University of Sussex. [Downloadable!]
  4. Booth, Alison L., 2009. "Gender and Competition," IZA Discussion Papers 4300, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Monojit Chatterji & Karen Mumford & Peter N. Smith, 2007. "The Public-Private Sector Gender Wage Differential: Evidence from Matched Employee-Workplace Data," IZA Discussion Papers 3158, Institute for the Study of Labor (IZA). [Downloadable!]
  6. Alison L. Booth, 2006. "The Glass Ceiling in Europe: Why Are Women Doing Badly in the Labour Market?," CEPR Discussion Papers 542, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University. [Downloadable!]
  7. Kelly, Eilish & McGuinness, Seamus & O'Connell, Philip, 2009. "Benchmarking, Social Partnership and Higher Remuneration: Wage Settling Institutions and the Public-Private Sector Wage Gap in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 40(3), pages 339–370. [Downloadable!]
    Other versions:
  8. Paolo Ghinetti & Claudio Lucifora, 2008. "Public Sector Pay Gaps and Skill Levels: a Cross-Country Comparison," Working Papers 118, SEMEQ Department - Faculty of Economics - University of Eastern Piedmont. [Downloadable!]
  9. Budria, Santiago, 2006. "Schooling and the distribution of wages in the european private and public sectors," MPRA Paper 90, University Library of Munich, Germany. [Downloadable!]
  10. Monojit Chatterji & Karen Mumford & Peter N Smith, 2007. "The Public-Private Sector Wage Differential: Gender, Workplaces and Family Friendliness," Discussion Papers 202, University of Dundee, Economic Studies. [Downloadable!]
  11. repec:ese:iserwp: is not listed on IDEAS
  12. Willem, A. & Devos, A. & Buelens, M., 2006. "Differences between private and public sector employees’ psychological contracts," Vlerick Leuven Gent Management School Working Paper Series 2007-2, Vlerick Leuven Gent Management School. [Downloadable!]
    Other versions:
  13. Wiji Arulampalam & Alison Booth & Mark L. Bryan, 2006. "Is There a Glass Ceiling over Europe? Exploring the Gender Pay Gap across the Wages Distribution," CEPR Discussion Papers 510, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University. [Downloadable!]
    Other versions:
  14. Narcy, Mathieu & Lanfranchi, Joseph & Meurs, Dominique, 2008. "Do women choose to work in the public and nonprofit sectors? Empirical evidence from a French national survey," MPRA Paper 14372, University Library of Munich, Germany. [Downloadable!]
  15. Bargain, Olivier & Melly, Blaise, 2008. "Public Sector Pay Gap in France: New Evidence Using Panel Data," IZA Discussion Papers 3427, Institute for the Study of Labor (IZA). [Downloadable!]
  16. Monojit Chatterji & Karen Mumford, 2007. "The Public-Private Sector Wage Differential for Full-Time Male Employees in Britain: A Preliminary Analysis," Discussion Papers 201, University of Dundee, Economic Studies. [Downloadable!]
    Other versions:
  17. Lixin Cai & Amy Y.C. Liu, 2008. "Public-Private Wage Gap in Australia: Variation Along the Distribution," CEPR Discussion Papers 581, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University. [Downloadable!]
  18. Boyle, Gerry & McElligott, Rory & O'Leary, Jim, 2004. "Public-Private Wage Differentials in Ireland, 1994-2001," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI), vol. 2004(2-Summer), pages 1-23. [Downloadable!]
  19. Kristjan-Olari Leping, 2005. "Public-Private Sector Wage Differential In Estonia: Evidence From Quantile Regression," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 39, Faculty of Economics and Business Administration, University of Tartu (Estonia). [Downloadable!]
  20. Le Breton, Michel & Michelangeli, Alessandra & Peluso, Eugenio, 2008. "Wage Discrimination Measurement: In Defense of a Simple But Informative Statistical Tool," IDEI Working Papers 516, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
  21. Patrinos, Harry Anthony & Ridao-Cano, Cris & Sakellariou, Chris, 2006. "Estimating the returns to education : accounting for heterogeneity in ability," Policy Research Working Paper Series 4040, The World Bank. [Downloadable!]
  22. Monojit Chatterji & Terhi Maczulskij & Jaakko Pehkonen, 2008. "Public Sector Pay in Finland," Discussion Papers 213, University of Dundee, Economic Studies. [Downloadable!]
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