Total Reward and pensions in the UK in the public and private sectors
AbstractRecent controversy has surrounded the relative value of public and private sector remuneration. We propose a comprehensive measure of Total Reward (TR) which includes not just pay, but pensions and other ‘benefits in kind’, evaluate it as the present value of the sum of all these payments over the lifetime and compare it for the highly educated in the UK public and private sectors. Our results suggest that TR is broadly equalised over the lifecycle for highly educated men while highly educated women have a clear TR advantage in the public sector by the end of their career. We suggest that the current controversy over public–private sector pension differentials and the perennial issues of public/private sector pay gaps requires a lifetime perspective and that the concept of TR is appropriate.
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Bibliographic InfoArticle provided by Elsevier in its journal Labour Economics.
Volume (Year): 19 (2012)
Issue (Month): 4 ()
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Web page: http://www.elsevier.com/locate/labeco
Total Reward; Pension; Public sector; Sector switching; Lifetime earnings; Benefits in kind;
Other versions of this item:
- Danzer, Alexander M. & Dolton, Peter J., 2012. "Total Reward and pensions in the UK in the public and private sectors," Munich Reprints in Economics 20028, University of Munich, Department of Economics.
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