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The Public Sector Pay Gap in France, Great Britain and Italy

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Author Info
Lucifora, Claudio () (Università Cattolica del Sacro Cuore, ERMES, CHILD and IZA Bonn)
Meurs, Dominique (Université Paris 2, ERMES)

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Abstract

We investigate public-private pay determination using French, British and Italian microdata. While traditional methods focus on parametric methods to estimate the public sector pay gap, in this paper, we use both non-parametric (kernel) and quantile regression methods to analyse the distribution of wages across sectors. We show that the public-private (hourly) wage differential is sensitive to the choice of quantile and that the pattern of premia varies with both gender and skill. In all countries the public sector is found to pay more low skilled workers with respect to the private sector, whilst the reverse is true for high skilled workers. The effects are more pronounced for females.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1041.

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Length: 22 pages
Date of creation: Mar 2004
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Handle: RePEc:iza:izadps:dp1041

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Related research
Keywords: wage differentials public sector quantile regression

Other versions of this item:

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
C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods

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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.:
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    Other versions:
  9. Goddeeris, John H, 1988. "Compensating Differentials and Self-selection: An Application to Lawyers," Journal of Political Economy, University of Chicago Press, vol. 96(2), pages 411-28, April. [Downloadable!] (restricted)
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    Other versions:
  15. Elliott, R. F. & Bender, K. A., . "Relative Earnings in the UK Public sector: The Impact of Pay Reform on Pay Structure," Working Papers 98-04, Department of Economics, University of Aberdeen. [Downloadable!]
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Full references

Cited by:
(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. 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!]
  2. Gerry Boyle & Rory McElligott & Jim O'Leary, 2004. "Public-Private Wage Differentials in Ireland, 1994-2001," Economics, Finance and Accounting Department Working Paper Series n1421004, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth. [Downloadable!]
  3. Monojit Chatterji & Karen Mumford & Peter N Smith, 2007. "The Public-Private Sector Wage Differential: Gender, Workplaces and Family Friendliness," Discussion Papers 202, University of Dundee, Economic Studies. [Downloadable!]
  4. Bargain, Olivier & Melly, Blaise, 2008. "Public Sector Pay Gap in France: New Evidence Using Panel Data," IZA Discussion Papers 3427, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Carlo Dell’Aringa & Claudio Lucifora & Federica Origo, 2005. "Public Sector Pay and Regional Competitiveness: A First Look at Regional Public-Private Wage Differentials in Italy," IZA Discussion Papers 1828, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  6. Asma Hyder & Barry Reilly, 2005. "The Public Sector Pay Gap in Pakistan: A Quantile Regression Analysis," PRUS Working Papers 33, Poverty Research Unit at Sussex, University of Sussex. [Downloadable!]
  7. repec:ese:iserwp: is not listed on IDEAS
  8. Monojit Chatterji & Karen Mumford, 2007. "The Public-Private Sector Wage Differential for Full-Time Male Employees in Britain: A Preliminary Analysis," Discussion Papers 201, University of Dundee, Economic Studies. [Downloadable!]
  9. Willem, A. & Devos, A. & Buelens, M., 2006. "Differences between private and public sector employees’ psychological contracts," Vlerick Leuven Gent Management School Working Paper Series 2007-2, Vlerick Leuven Gent Management School. [Downloadable!]
  10. Monojit Chatterji & Karen Mumford & Peter N. Smith, 2007. "The Public-Private Sector Gender Wage Differential: Evidence from Matched Employee-Workplace Data," IZA Discussion Papers 3158, Institute for the Study of Labor (IZA). [Downloadable!]
  11. Arulampalam, Wiji & Booth, Alison L. & Bryan, Mark L., 2004. "Is There a Glass Ceiling over Europe? Exploring the Gender Pay Gap across the Wages Distribution," IZA Discussion Papers 1373, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  12. Patrinos, Harry Anthony & Ridao-Cano, Cris & Sakellariou, Chris, 2006. "Estimating the returns to education : accounting for heterogeneity in ability," Policy Research Working Paper Series 4040, The World Bank. [Downloadable!]
  13. A. Willem & A. Devos & M. Buelens, 2007. "Differences between Private and Public Sector Employees’ Psychological Contracts," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 07/440, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
  14. Kristjan-Olari Leping, 2005. "Public-Private Sector Wage Differential In Estonia: Evidence From Quantile Regression," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 39, Faculty of Economics and Business Administration, University of Tartu (Estonia). [Downloadable!]
  15. Alison L. Booth, 2006. "The Glass Ceiling in Europe: Why Are Women Doing Badly in the Labour Market?," CEPR Discussion Papers 542, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University. [Downloadable!]
  16. LE BRETON, Michel & MICHELANGELI, Alessandra & PELUSO, Eugenio, 2008. "Wage Discrimination Measurement: In Defense of a Simple But Informative Statistical Tool," IDEI Working Papers 516, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
  17. Paolo Ghinetti & Claudio Lucifora, 2008. "Public Sector Pay Gaps and Skill Levels: a Cross-Country Comparison," Working Papers 118, SEMEQ Department - Faculty of Economics - University of Eastern Piedmont. [Downloadable!]
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