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Public wage differentials and the treatment of occupational differences

Author

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  • Dale Belman

    (School of Labor and Industrial Relations, Michigan State University)

  • John S. Heywood

    (University of Wisconsin-Milwaukee)

Abstract

Past research demonstrates that the estimated size of the federal government earnings differential shrinks substantially with the addition of detailed occupational controls. Possible explanations for this reduction are: controlling for the differing sectoral distributions of common occupations, and controlling for detailed occupations unique to each sector. While occupational detail does not eliminate the federal differential, more than two-thirds of the reduction in the federal differential comes from controlling for unique occupations and, moreover, this is equivalent to excluding all observations in unique occupations. This finding is contrasted with that for the local sector in which the differing distribution of common occupations largely explains the pattern of the differential. © 2004 by the Association for Public Policy Analysis and Management.

Suggested Citation

  • Dale Belman & John S. Heywood, 2004. "Public wage differentials and the treatment of occupational differences," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 23(1), pages 135-152.
    • Handle: RePEc:wly:jpamgt:v:23:y:2004:i:1:p:135-152
    DOI: 10.1002/pam.10183
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    References listed on IDEAS

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    1. Lawrence Katz & Alan Krueger, 1991. "Changes in the Structure of Wages in the Public and Private Sectors," Working Papers 662, Princeton University, Department of Economics, Industrial Relations Section..
    2. Keith A. Bender, 2003. "Examining Equality between Public- and Private-Sector Wage Distributions," Economic Inquiry, Western Economic Association International, vol. 41(1), pages 62-79, January.
    3. Sharon P. Smith, 1976. "Government Wage Differentials by Sex," Journal of Human Resources, University of Wisconsin Press, vol. 11(2), pages 185-199.
    4. Moulton, Brent R, 1990. "A Reexamination of the Federal-Private Wage Differential in the United States," Journal of Labor Economics, University of Chicago Press, vol. 8(2), pages 270-293, April.
    5. Gregory, Robert G. & Borland, Jeff, 1999. "Recent developments in public sector labor markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 53, pages 3573-3630, Elsevier.
    6. Lawrence F. Katz & Alan B. Krueger, 1991. "Changes in the Structure of Wages in the Public and Private Sectors," Working Papers 662, Princeton University, Department of Economics, Industrial Relations Section..
    7. Dale Belman & John S. Heywood, 1990. "The Effect of Establishment and Firm Size On Public Wage Differentials," Public Finance Review, , vol. 18(2), pages 221-235, April.
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    Cited by:

    1. Morikawa, Masayuki, 2016. "A comparison of the wage structure between the public and private sectors in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 39(C), pages 73-90.
    2. Gimpelson, V. & Kapeliushnikov, R. & Lukyanova, A. & Ryzhikova, Z. & Kulyaeva, G., 2010. "Ownership and Wage Differentiation in Russia," Journal of the New Economic Association, New Economic Association, issue 5, pages 48-72.
    3. Maury Gittleman & Brooks Pierce, 2012. "Compensation for State and Local Government Workers," Journal of Economic Perspectives, American Economic Association, vol. 26(1), pages 217-242, Winter.
    4. Jürgen, Göbel, 2009. "How can the Power of Leviathans be Measured?," MPRA Paper 13663, University Library of Munich, Germany.
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    7. Dale Belman & John S. Heywood, 2004. "Public-Sector Wage Comparability: The Role of Earnings Dispersion," Public Finance Review, , vol. 32(6), pages 567-587, November.

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