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Wage structures in the private and public sectors in West Germany

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Author Info
Christian Dustmann () (Institute for Fiscal Studies and University College London)
Arthur Van Soest

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Abstract

In this paper, we investigate pay structures in the private and public sectors for West Germany. We commence by describing some basic features of the public sector. We use micro-data from the German Socio-Economic Panel for the years 1984-93 to analyse developments and differences in public and private sector wage distributions for both males and females. We break wages down into different education groups and age-groups, and use regressions to construct conditional wage differentials. Our results differ in many aspects from findings for the UK. For instance, we find that although mean wages are higher in the public sector for both males and females, conditional wages are higher in the private sector for all education groups for males, but higher in the public sector for females.

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Publisher Info
Article provided by Institute for Fiscal Studies in its journal Fiscal Studies.

Volume (Year): 18 (1997)
Issue (Month): 3 (August)
Pages: 225-247
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Handle: RePEc:ifs:fistud:v:18:y:1997:i:3:p:225-247

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J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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.:

  1. Pederson, P. J. & Schmidt-Sorensen, J. B. & Smith, N. & Westergard-Nielsen, N., 1990. "Wage differentials between the public and private sectors," Journal of Public Economics, Elsevier, vol. 41(1), pages 125-145, February. [Downloadable!] (restricted)
  2. van der Gaag, Jacques & Vijverberg, Wim, 1988. "A Switching Regression Model for Wage Determinants in the Public and Private Sectors of a Developing Country," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 244-52, May. [Downloadable!] (restricted)
  3. Belman, Dale L & Heywood, John S, 1989. "Government Wage Differentials: A Sample Selection Approach," Applied Economics, Taylor and Francis Journals, vol. 21(4), pages 427-38, April.
  4. Hartog, Joop & Oosterbeek, Hessel, 1993. "Public and private sector wages in the Netherlands," European Economic Review, Elsevier, vol. 37(1), pages 97-114, January. [Downloadable!] (restricted)
  5. Sharon P. Smith, 1976. "Pay differential between federal government and private sector workers," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 29(2), pages 179-197, January.
  6. Dustmann, C. & van Soest, A., 1997. "Public and Private Sector Wages of Male Workers in Germany," Economics Working Papers eco97/13, European University Institute.
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  7. Zweimuller, J & Winter-Ebmer, R, 1994. "Gender Wage Differentials in Private and Public Sector Jobs," Journal of Population Economics, Springer, vol. 7(3), pages 271-85, July.
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  8. De Fraja, Giovanni, 1993. "Unions and Wages in Public and Private Firms: A Game-Theoretic Analysis," Oxford Economic Papers, Oxford University Press, vol. 45(3), pages 457-69, July. [Downloadable!] (restricted)
  9. Gindling, T H, 1991. "Labor Market Segmentation and the Determination of Wages in the Public, Private-Formal, and Informal Sectors in San Jose, Costa Rica," Economic Development and Cultural Change, University of Chicago Press, vol. 39(3), pages 584-605, April.
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(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. Chen, Natalie & Conconi, Paola & Perroni, Carlo, 2007. "Women's Earning Power and the 'Double Burden' of Market and Household Work," CEPR Discussion Papers 6269, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  2. Ignacio García-Pérez & Juan F. Jimeno, 2005. "Public sector wage gaps in Spanish regions," Banco de España Working Papers 0526, Banco de España. [Downloadable!]
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  3. Andrew Henley, Dennis Thomas, 2001. "Public Service Employment and the Public-- Private Wage Differential in British Regions," Regional Studies, Taylor and Francis Journals, vol. 35(3), pages 229-240, May. [Downloadable!] (restricted)
  4. 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!]
  5. Chen, Natalie & Conconi, Paola & Perroni, Carlo, 2007. "Does Migration Empower Married Women?," The Warwick Economics Research Paper Series (TWERPS) 812, University of Warwick, Department of Economics. [Downloadable!]
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  6. 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!]
  7. Pfeifer, Christian, 2008. "Risk Aversion and Sorting into Public Sector Employment," IZA Discussion Papers 3503, Institute for the Study of Labor (IZA). [Downloadable!]
  8. Richard Disney & Amanda Gosling, 1998. "Does it pay to work in the public sector?," Fiscal Studies, Institute for Fiscal Studies, vol. 19(4), pages 347-374, November. [Downloadable!]
  9. Axel Heitmueller & Kostas Mavromaras, 2005. "On the Post-Unification Development of Public and Private Pay in Germany," IZA Discussion Papers 1696, Institute for the Study of Labor (IZA). [Downloadable!]
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