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Total Reward and pensions in the UK in the public and private sectors

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  • Danzer, Alexander M.
  • Dolton, Peter J.

Abstract

Recent 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 Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 19 (2012)
Issue (Month): 4 ()
Pages: 584-594

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Handle: RePEc:eee:labeco:v:19:y:2012:i:4:p:584-594

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Web page: http://www.elsevier.com/locate/labeco

Related research

Keywords: Total Reward; Pension; Public sector; Sector switching; Lifetime earnings; Benefits in kind;

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References

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Cited by:
  1. Danzer, Natalia, 2013. "Job Satisfaction and Self-Selection into the Public or Private Sector: Evidence from a Natural Experiment," IZA Discussion Papers 7644, Institute for the Study of Labor (IZA).

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