Total Reward in the UK in the Public and Private Sectors
AbstractRecent controversy has surrounded the relative value of public and private sector remuneration. We define a comprehensive measure of Total Reward (TR) which includes not just pay, but pensions and other 'benefits in kind', evaluate it as the present value of the sum of all these payments over the lifetime and compare it in the UK public and private sectors. Our results suggest that TR is equalized over the lifecycle for men while women have a clear TR advantage in the public sector by the end of their career. We suggest that the current controversy over public-private sector pension differentials and the perennial issues of public/private sector pay gaps requires a life time perspective and that the concept of TR is appropriate.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5656.
Length: 45 pages
Date of creation: Apr 2011
Date of revision:
Publication status: published in: Labour Economics, 2012, 19 (4), 584-594
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Find related papers by JEL classification:
- J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
- J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-04-30 (All new papers)
- NEP-EUR-2011-04-30 (Microeconomic European Issues)
- NEP-LAB-2011-04-30 (Labour Economics)
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.:
- Alan L. Gustman & Olivia S. Mitchell & Andrew A. Samwick & Thomas L. Steinmeier, . "Evaluating Pension Entitlements," Pension Research Council Working Papers 98-20, Wharton School Pension Research Council, University of Pennsylvania.
- Edward B. Montgomery & Kathryn Shaw & Mary Ellen Benedict, 1990.
"Pensions and Wages: An Hedonic Price Theory Approach,"
NBER Working Papers
3458, National Bureau of Economic Research, Inc.
- Montgomery, Edward & Shaw, Kathryn & Benedict, Mary Ellen, 1992. "Pensions and Wages: An Hedonic Price Theory Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(1), pages 111-28, February.
- Disney, Richard & Whitehouse, Edward, 1996. "What Are Occupational Pension Plan Entitlements Worth in Britain?," Economica, London School of Economics and Political Science, vol. 63(250), pages 213-38, May.
- Sarah Smith & James Banks, 2006.
"Retirement in the UK,"
The Centre for Market and Public Organisation
06/140, Department of Economics, University of Bristol, UK.
- Dolton, Peter J., 2006. "Teacher Supply," Handbook of the Economics of Education, Elsevier.
- Dale Belman & John S. Heywood, 2004. "Public-Sector Wage Comparability: The Role of Earnings Dispersion," Public Finance Review, , vol. 32(6), pages 567-587, November.
- James E. Pesando, 1982.
"Valuing Pensions (Annuities) with Different Types of Inflation Protection in Total Compensation Comparisons,"
NBER Working Papers
0956, National Bureau of Economic Research, Inc.
- James E. Pesando, 1984. "Valuing Pensions (Annuities) with Different Types of Inflation Protection in Total Compensation Comparisons," Canadian Journal of Economics, Canadian Economics Association, vol. 17(3), pages 569-87, August.
- Catrin Ormerod & Felix Ritchie, 2007. "Linking ASHE and LFS: can the main earnings sources be reconciled?," Economic and Labour Market Review, Palgrave Macmillan, vol. 1(3), pages 24-31, March.
- Richard Disney & Carl Emmerson & Gemma Tetlow, 2009.
"What is a Public Sector Pension Worth?,"
Royal Economic Society, vol. 119(541), pages F517-F535, November.
- Rowena Crawford & Carl Emmerson & Gemma Tetlow, 2010. "Occupational pension value in the public and private sectors," IFS Working Papers W10/03, Institute for Fiscal Studies.
- Quinn, Joseph F, 1982. "Pension Wealth of Government and Private Sector Workers," American Economic Review, American Economic Association, vol. 72(2), pages 283-87, May.
- Woodbury, Stephen A, 1983. "Substitution between Wage and Nonwage Benefits," American Economic Review, American Economic Association, vol. 73(1), pages 166-82, March.
- Richard Disney & Amanda Gosling, 1998. "Does it pay to work in the public sector?," Fiscal Studies, Institute for Fiscal Studies, vol. 19(4), pages 347-374, November.
- H. Ada & Elizabeth Roberts & Robert Elliott & David Bell & Anthony Scott, 2006. "Comparing the New Earnings Survey (NES) and the Labour Force Survey (LFS): An Analysis of the differences between the data sets and their implications for the pattern of geographical pay in the UK," Regional Studies, Taylor & Francis Journals, vol. 40(6), pages 645-665.
- Chan, Sewin & Stevens, Ann Huff, 2001. "Job Loss and Employment Patterns of Older Workers," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 484-521, April.
- Cappellari, Lorenzo, 2002. "Earnings dynamics and uncertainty in Italy: how do they differ between the private and public sectors?," Labour Economics, Elsevier, vol. 9(4), pages 477-496, September.
- Montgomery, Edward & Shaw, Kathryn, 1997.
"Pensions and Wage Premia,"
Western Economic Association International, vol. 35(3), pages 510-22, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).
If references are entirely missing, you can add them using this form.