The Public-Private Sector Wage Differential for Full-Time Male Employees in Britain: A Preliminary Analysis
AbstractRelative employment conditions have changed across the public and private sectors in Britain over the last decade with the former becoming a more attractive earnings option. Using new linked employee-employer data for Britain in 2004, this paper shows that, on average, full-time male public sector employees earn 11.7 log wage points more than their private sector counterparts. Decomposition analysis reveals that the majority of this pay premium is associated with public sector employees having individual characteristics associated with higher pay and to their working in higher paid occupations. Whilst there is some evidence of workplace segregation in the private sector, there is little indication that rates of return vary across the earnings distribution for either public or private sector employees. It no longer appears to be the case that the public sector provides a refuge for the low skilled at the expense of the highly educated. Furthermore, working conditions appear more uniform in the public sector and, unlike the private sector, there is no significant penalty associated with ethnic background.
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Bibliographic InfoPaper provided by Economic Studies, University of Dundee in its series Dundee Discussion Papers in Economics with number 201.
Length: 26 pages
Date of creation: Jul 2007
Date of revision:
public sector earnings; male; earnings-gap; interquantile; segregation;
Other versions of this item:
- Chatterji, Monojit & Mumford, Karen A., 2007. "The Public-Private Sector Wage Differential for Full-Time Male Employees in Britain: A Preliminary Analysis," IZA Discussion Papers 2781, Institute for the Study of Labor (IZA).
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
- J7 - Labor and Demographic Economics - - Labor Discrimination
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