This paper uses data from the U.S. Decennial Census and the Current Population Surveys to document the differential shifts that occurred in the wage structures of the public and privatesectors between 1960 and 2000. The wage gap between the typical public sector worker and a comparable private sector worker was relatively constant for men during this period, but declined substantially for women. Equally important, wage dispersion in the public sector was increasing relative to wage dispersion in the private sector prior to 1970, at the time when public sector employment was rising rapidly. Since 1970, however, there has been a significant relative compression of the wage distribution in the public sector. The different evolutions of the wage structures in the two sectors are an important determinant of the sorting of workers across sectors. As a result of the relative wage compression, the public sector found it increasingly more difficult to attract and retain high-skill workers
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
9313.
Length: Date of creation: Nov 2002 Date of revision: Handle: RePEc:nbr:nberwo:9313
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Find related papers by JEL classification: J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs J4 - Labor and Demographic Economics - - Particular Labor Markets
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Ronald G. Ehrenberg & Joshua L. Schwarz, 1987.
"Public Sector Labor Markets,"
NBER Working Papers
1179, National Bureau of Economic Research, Inc.
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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.
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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.)
Johannes Hörner & L. Rachel Ngai & Claudia Olivetti, 2007.
"Public Enterprises And Labor Market Performance,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 48(2), pages 363-384, 05.
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