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The Public-Private Sector Gender Wage Differential: Evidence from Matched Employee-Workplace Data

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Author Info

  • Chatterji, Monojit

    ()
    (University of Dundee)

  • Mumford, Karen A.

    ()
    (University of York)

  • Smith, Peter N.

    ()
    (University of York)

Abstract

Using new linked employee-workplace 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 little 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, an important workplace characteristic for the public private pay gap is the presence of family-friendly employment practices. Increased provision is especially associated with higher relative earnings in the public sector for women.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3158.

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Length: 31 pages
Date of creation: Nov 2007
Date of revision:
Publication status: published as 'The public-private sector gender wage differential in Britain: evidence from matched employee-workplace data ' in: Applied Economics, 2011, 43 (26), 3819 - 3833
Handle: RePEc:iza:izadps:dp3158

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Keywords: public sector earnings; gender; gap; family friendly; decomposition;

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References

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  1. Joseph G. Altonji & Rebecca M. Blank, . "Race and Gender in the Labor Market," IPR working papers 98-18, Institute for Policy Resarch at Northwestern University.
  2. repec:rus:hseeco:124059 is not listed on IDEAS
  3. Fabien Postel-Vinay & Hélène Turon, 2007. "The Public Pay Gap in Britain: Small Differences That (Don't?) Matter," Economic Journal, Royal Economic Society, vol. 117(523), pages 1460-1503, October.
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Cited by:
  1. Liviu Voinea & Flaviu Mihaescu, 2011. "A Contribution to the Public-Private Wage Inequality Debate: The Iconic Case of Romania," wiiw Balkan Observatory Working Papers 093, The Vienna Institute for International Economic Studies, wiiw.
  2. Yekaterina Chzhen & Karen Mumford, . "Gender Gaps Across the Earnings Distribution in Britain: Are Women Bossy Enough?," Discussion Papers 09/27, Department of Economics, University of York.
  3. Liviu Voinea & Flaviu Mihaescu, 2012. "A contribution to the public–private wage inequality debate," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 20(2), pages 315-337, 04.
  4. Giordano, Raffaela & Depalo, Domenico & Coutinho Pereira, Manuel & Eugène, Bruno & Papapetrou, Evangelia & Pérez, Javier J. & Reiss, Lukas & Roter, Mojca, 2011. "The public sector pay gap in a selection of Euro area countries," Working Paper Series 1406, European Central Bank.
  5. Lixin Cai & Amy Y. C. Liu, 2011. "Public–Private Sector Wage Gap in Australia: Variation along the Distribution," British Journal of Industrial Relations, London School of Economics, vol. 49(2), pages 362-390, 06.

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