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

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Author Info
Monojit Chatterji () (University of Dundee)
Karen Mumford () (University of York and IZA)
Peter N. Smith () (University of York)

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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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Publisher 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:
Handle: RePEc:iza:izadps:dp3158

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

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

This paper has been announced in the following NEP Reports:

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:
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    Other versions:
  3. Filipe Almeida-Santos & Karen Mumford, 2005. "Employee Training And Wage Compression In Britain," Manchester School, University of Manchester, vol. 73(3), pages 321-342, 06. [Downloadable!] (restricted)
    Other versions:
  4. Doris Weichselbaumer & Rudolf Winter-Ebmer, 2005. "A Meta-Analysis of the International Gender Wage Gap," Journal of Economic Surveys, Blackwell Publishing, vol. 19(3), pages 479-511, 07. [Downloadable!] (restricted)
    Other versions:
  5. Helen Simpson, 2007. "Productivity in Public Services," The Centre for Market and Public Organisation 07/164, Department of Economics, University of Bristol, UK. [Downloadable!]
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  6. John W. Budd & Karen Mumford, 2004. "Trade unions and family-friendly policies in Britain," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 57(2), pages 204-222, January. [Downloadable!] (restricted)
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  7. Claudio Lucifora & Dominique Meurs, 2006. "The Public Sector Pay Gap In France, Great Britain And Italy," Review of Income and Wealth, Blackwell Publishing, vol. 52(1), pages 43-59, 03. [Downloadable!] (restricted)
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  8. Kimberly Bayard & Judith Hellerstein & David Neumark & Kenneth Troske, 1999. "New Evidence on Sex Segregation and Sex Differences in Wages from Matched Employee-Employer Data," NBER Working Papers 7003, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  10. repec:rus:hseeco:124059 is not listed on IDEAS
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  19. Altonji, Joseph G. & Blank, Rebecca M., 1999. "Race and gender in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 48, pages 3143-3259 Elsevier. [Downloadable!] (restricted)
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  20. Helen Gray, 2002. "Family-Friendly Working: What a Performance! An Analysis of the Relationship Between the Availability of Family-Friendly Policies and Establishment Performance," CEP Discussion Papers dp0529, Centre for Economic Performance, LSE. [Downloadable!]
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. Lixin Cai & Amy Y.C. Liu, 2008. "Public-Private Wage Gap in Australia: Variation Along the Distribution," CEPR Discussion Papers 581, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University. [Downloadable!]
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