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The Impact of the Public Sector Pay Review Bodies in the UK

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  • Dolton, Peter

    (University of Sussex)

  • Makepeace, Gerry

    (Cardiff University)

Abstract

This paper examines the impact of the Pay Review Bodies (PRBs) on the public sector pay of their remit groups. We compare the real weekly earnings of groups of workers in occupations covered by PRBs, in the remainder of the public sector and in the private sector using LFS data from 1993 to 2006 for 10 occupational sub-groups. We describe how the pattern of relative occupational pay varies over time and by gender and can be interpreted as compensating pay differentials. In several public sector occupations, men incur a much larger earnings penalty than women. Our difference- in-difference impact estimation method relies on comparison of the difference between any specific PRB group and other (non-PRB) public sector workers over time. For the most part we find that the PRBs have had little or no practical impact on earnings over and above that of comparable public sector workers not covered by the PRBs.

Suggested Citation

  • Dolton, Peter & Makepeace, Gerry, 2008. "The Impact of the Public Sector Pay Review Bodies in the UK," IZA Discussion Papers 3373, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp3373
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    References listed on IDEAS

    as
    1. Dolton, Peter J, 1990. "The Economics of UK Teacher Supply: The Graduate's Decision," Economic Journal, Royal Economic Society, vol. 100(400), pages 91-104, Supplemen.
    2. Leslie, Derek, 1985. "The Economics of Cash Limits as a Method of Pay Determination," Economic Journal, Royal Economic Society, vol. 95(379), pages 662-678, September.
    3. Robert Elliott & Claudio Lucifora & Dominique Meurs, 1999. "Public Sector Pay Determination in the European Union: Issues and Outcomes," Palgrave Macmillan Books, in: Robert Elliott & Claudio Lucifora & Dominique Meurs (ed.), Public Sector Pay Determination in the European Union, chapter 1, pages 1-28, Palgrave Macmillan.
    4. Robert Elliott & Claudio Lucifora & Dominique Meurs (ed.), 1999. "Public Sector Pay Determination in the European Union," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-14946-9.
    5. Blackaby, D. H. & Murphy, P. D. & O'Leary, N. C., 1999. "The payment of public sector workers in the UK: reconciliation with North American findings," Economics Letters, Elsevier, vol. 65(2), pages 239-243, November.
    6. Ehrenberg, Ronald G. & Schwarz, Joshua L., 1987. "Public-sector labor markets," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 2, chapter 22, pages 1219-1260, Elsevier.
    7. Peter Dolton & Steven McIntosh, 2003. "Public and Private Sector Labour Markets," Palgrave Macmillan Books, in: Richard Dickens & Paul Gregg & Jonathan Wadsworth (ed.), The Labour Market Under New Labour, chapter 14, pages 214-231, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Public Sector Pay Review Bodies;

    JEL classification:

    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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