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The Consequences of The Decline in Public Sector Pay in Britain: A Little Bit of Evidence

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Author Info
Stephen Nickell (London School of Economics and Bank of England Monetary Policy Committie)
Glenda Quintini (Credit Suisse First Boston)

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Abstract

Following the fall in overall net public investment, the relative pay of most public sector workers in the United Kingdom declined sharply after the mid-1970s. For example, the relative pay of male teachers fell by over 10 percentage points from the late 1970s to the late 1980s. So has this generated a fall in quality? Using age 10/11 test score percentile positions as an indicator, we find that men entering non-manual public sector occupations in the early 1990s had a significantly lower test score position than those entering in the late 1970s. No such falls were exhibited by women. Copyright Royal Economic Society 2002

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Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 112 (2002)
Issue (Month): 477 (February)
Pages: F107-F118
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Handle: RePEc:ecj:econjl:v:112:y:2002:i:477:p:f107-f118

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  1. Dearden, Lorraine, 1999. "The effects of families and ability on men's education and earnings in Britain1," Labour Economics, Elsevier, vol. 6(4), pages 551-567, November. [Downloadable!] (restricted)
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  1. Fabien Postel-Vinay & Hélène Turon, 2005. "The Public Pay Gap in Britain: Small Differences That (Don't?) Matter," The Centre for Market and Public Organisation 05/121, Department of Economics, University of Bristol, UK. [Downloadable!]
    Other versions:
  2. 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!]
  3. 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:
  4. Emma Hall & Carol Propper & John Van Reenen, 2007. "Can pay regulation kill? Panel data evidence on the effect of labor markets on hospital performance," The Centre for Market and Public Organisation 08/184, Department of Economics, University of Bristol, UK. [Downloadable!]
    Other versions:
  5. Richard Disney & Carl Emmerson & Gemma Tetlow, 2007. "What is a public sector pension worth?," IFS Working Papers W07/17, Institute for Fiscal Studies. [Downloadable!]
  6. Monojit Chatterji & Karen Mumford, 2007. "Flying High and Laying Low in the Public and Private Sectors: A Comparison of Pay Differentials for Full-Time Male Employees in Britain," Discussion Papers 209, University of Dundee, Economic Studies. [Downloadable!]
  7. Grönqvist, Erik & Vlachos, Jonas, 2008. "One Size Fits All? The Effects of Teacher Cognitive and Non-cognitive Abilities on Student," Working Paper Series 779, Research Institute of Industrial Economics. [Downloadable!]
  8. 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!]
  9. Disney, Richard F & Gosling, Amanda, 2003. "A New Method for Estimating Public Sector Pay Premia: Evidence from Britain in the 1990's," CEPR Discussion Papers 3787, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  10. Monojit Chatterji & Terhi Maczulskij & Jaakko Pehkonen, 2008. "Public Sector Pay in Finland," Discussion Papers 213, University of Dundee, Economic Studies. [Downloadable!]
  11. Peter Dolton & Gerald Makepeace & Oscar Marcenaro-Gutierrez, 2005. "Career progression: Getting-on, getting-by and going nowhere," Education Economics, Taylor and Francis Journals, vol. 13(2), pages 237-255, June. [Downloadable!] (restricted)
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  12. Richard Disney & Amanda Gosling, 2008. "Changing public sector wage differentials in the UK," IFS Working Papers W08/02, Institute for Fiscal Studies. [Downloadable!]
  13. David Greenaway & Michelle Haynes, 2003. "Funding Higher Education in The UK: The Role of Fees and Loans," Economic Journal, Royal Economic Society, vol. 113(485), pages F150-F166, February. [Downloadable!] (restricted)
  14. Grönqvist, Erik & Vlachos, Jonas, 2008. "One size fits all? The effects of teacher cognitive and non-cognitive abilities on student achievement," Working Paper Series 2008:25, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
    Other versions:
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