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The Public-Private Sector Wage Differential: Gender, Workplaces and Family Friendliness

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Author Info
Monojit Chatterji
Karen Mumford
Peter N Smith

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Abstract

This study examines the role of individual characteristics, occupation, and workplace features accounting for differences in hourly earnings between male and female fulltime employees in the public and private sectors. Using new linked employeeemployer data for Britain in 2004, we find that the nature of the public private pay gap differs between genders and that of the gender pay gap differs between sectors. The analysis shows that essentially none of the gender earnings gap in both the public and private sector can be explained by differences in observable characteristics. Decomposition analysis further reveals that the contribution of differences in workplace characteristics to the public private earnings gap is sizeable and significant. Whilst the presence of performance related pay and company pension schemes is associated with higher relative earnings for those in the private sector, the key workplace characteristic for the public private pay gap is the presence of familyfriendly employment practices. Increased provision is associated with higher relative earnings in the public sector for both men and women.

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File URL: http://www.dundee.ac.uk/econman/discussion/DDPE_202.pdf
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Publisher Info
Paper provided by University of Dundee, Economic Studies in its series Discussion Papers with number 202.

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Length: 34 pages
Date of creation: Jul 2007
Date of revision:
Handle: RePEc:dun:dpaper:202

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Postal: Dundee, DD1 4HN
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Related research
Keywords: public sector earnings; gender; gap; family friendly; decomposition;

Find related papers by JEL classification:
J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
J7 - Labor and Demographic Economics - - Labor Discrimination

References listed on IDEAS
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    Other versions:
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    Other versions:
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    Other versions:
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