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Public-Private Wage Differentials in Ireland, 1994-2001

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Author Info
Gerry Boyle () (National University of Ireland, Maynooth)
Rory McElligott (National University of Ireland, Maynooth)
Jim O'Leary (National University of Ireland, Maynooth)

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Abstract

Are public sector workers in Ireland paid more than private sector employees, when such differences in productivity-related personal attributes and job characteristics are controlled for? We estimate that in 2001 the premium enjoyed by public servants was about 13 per cent. We find that the premium, is significantly bigger for those near the bottom of the earnings distribution than for those near the top, was significantly bigger for women than men in the mid-1990s but not at the end of the 1990s, and does not vary significantly across different levels of educational attainment. We estimate the premium for 2001 to be not significantly different from that estimated for 1994 despite this period a period of exceptionally rapid output and employment growth, and correspondingly sharp tightening of labour market conditions in the Irish economy. The most remarkable difference between our results and those of other researchers for other countries relates to the absolute size of the premium. A number of possible explanations for this difference are discussed.

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Publisher Info
Paper provided by Department of Economics, Finance and Accounting, National University of Ireland - Maynooth in its series Economics, Finance and Accounting Department Working Paper Series with number n1421004.

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Length: 42 pages
Date of creation: Oct 2004
Date of revision:
Handle: RePEc:may:mayecw:n1421004

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Postal: Maynooth, Co. Kildare
Phone: 353-1-7083728
Fax: 353-1-7083934
Web page: http://www.may.ie/academic/economics/
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Related research
Keywords: public private wage differentials Ireland

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

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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.:
  1. Casey, Barra, 2004. "An Economy-Wide Perspective on Earnings Data in Ireland," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI), vol. 2004(1-Spring), pages 1-22. [Downloadable!]
  2. Claudio Lucifora & Dominique Meurs, 2004. "The Public Sector Pay Gap in France, Great Britain and Italy," CHILD Working Papers wp04_04, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY. [Downloadable!]
    Other versions:
  3. James M. Poterba & Kim S. Rueben, 1994. "The Distribution of Public Sector Wage Premia: New Evidence Using Quantile Regression Methods," NBER Working Papers 4734, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Blaise Melly, 2005. "Public-private sector wage differentials in Germany: Evidence from quantile regression," Empirical Economics, Springer, vol. 30(2), pages 505-520, 09. [Downloadable!] (restricted)
  5. 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. [Downloadable!]
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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. Niamh Hardiman, 2006. "Politics and Social Partnership - Flexible Network Governance," The Economic and Social Review, Economic and Social Studies, vol. 37(3), pages 343–374. [Downloadable!]
  2. Boyle, Gerry & McElligott, Rory & O'Leary, Jim, 2004. "Public-Private Wage Differentials in Ireland, 1994-2001," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI), vol. 2004(2-Summer), pages 1-23. [Downloadable!]
  3. Kelly, Elish & McGuinness, Seamus & O'Connell, Philip J., 2008. "Benchmarking, Social Partnership and Higher Remuneration: Wage Settling Institutions and the Public-Private Sector Wage Gap in Ireland," Papers WP270, Economic and Social Research Institute (ESRI). [Downloadable!]
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