The gap between public and private wages: new evidence for the EU
AbstractThis paper aims to assess the size of the wage gap between the public and private sectors within all European Union countries by using the European Structure of Earnings Survey (SES henceforth), compiled by Eurostat for the years 2006 and 2010. Public sector employees are found to enjoy on average higher wages than comparable workers in the private sector in 2010, even after controlling for the level of educational attainment. Regarding gender, contrary to other empirical papers, for the countries with full public sector coverage, we do not find evidence of a higher positive wage gap for women. On average the public wage premium is higher for older workers and workers with lower levels of education. Finally, negative public wage premia are found for workers at higher positions, whereas the positive and sometimes large overall public wage gaps are mainly explained by the sizeable gaps observed at lower job positions.
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Bibliographic InfoPaper provided by Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission in its series European Economy - Economic Papers with number 508.
Length: 51 pages
Date of creation: Nov 2013
Date of revision:
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Find related papers by JEL classification:
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
- O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-11-16 (All new papers)
- NEP-EUR-2013-11-16 (Microeconomic European Issues)
- NEP-LAB-2013-11-16 (Labour Economics)
- NEP-LMA-2013-11-16 (Labor Markets - Supply, Demand, & Wages)
- NEP-NPS-2013-11-16 (Nonprofit & Public Sector)
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- Ramos, Raul & Sanromá, Esteban & Simón, Hipólito, 2014. "Public-Private Sector Wage Differentials by Type of Contract: Evidence from Spain," IZA Discussion Papers 8158, Institute for the Study of Labor (IZA).
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