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The Public Sector Pay Premium and Compensating Differentials in the New Zealand Labour Market

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Abstract

In this note, propensity score matching (PSM) methods are applied to data from the 2005 International Social Survey Program Work Orientations (ISSP-WO) survey to examine the public sector pay premium in New Zealand. Taking account of a wide range of worker characteristics and attitudes, job attributes, and the effects that jobs have on workers and their family life, there appears to be a pay premium from working in the public sector of 17 to 21 percent.

Suggested Citation

  • John Gibson, 2007. "The Public Sector Pay Premium and Compensating Differentials in the New Zealand Labour Market," Working Papers in Economics 07/20, University of Waikato.
    • Handle: RePEc:wai:econwp:07/20
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    File URL: https://repec.its.waikato.ac.nz/wai/econwp/0720.pdf
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    References listed on IDEAS

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    1. David Blanchflower, 1996. "The Role and Influence of Trade Unions in the OECD," CEP Discussion Papers dp0310, Centre for Economic Performance, LSE.
    2. Dahlberg, Matz & Mörk, Eva, 2004. "Public employment and the double role of bureaucrats," Working Paper Series 2004:11, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    3. Michael Demoussis & Nicholas Giannakopoulos, 2007. "Exploring Job Satisfaction in Private and Public Employment: Empirical Evidence from Greece," LABOUR, CEIS, vol. 21(2), pages 333-359, June.
    4. Gregory, Robert G. & Borland, Jeff, 1999. "Recent developments in public sector labor markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 53, pages 3573-3630, Elsevier.
    5. Don Bellante & Albert N. Link, 1981. "Are Public Sector Workers More Risk Averse Than Private Sector Workers?," ILR Review, Cornell University, ILR School, vol. 34(3), pages 408-412, April.
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    Cited by:

    1. Bonaccolto-Töpfer, Marina & Castagnetti, Carolina & Prümer, Stephanie, 2022. "Understanding the public-private sector wage gap in Germany: New evidence from a Fixed Effects quantile Approach∗," Economic Modelling, Elsevier, vol. 116(C).
    2. John Gibson, 2009. "The rising public sector pay premium in the New Zealand labour market," New Zealand Economic Papers, Taylor & Francis Journals, vol. 43(3), pages 255-261.
    3. Jelena Lausev, 2014. "WHAT HAS 20 YEARS OF PUBLIC–PRIVATE PAY GAP LITERATURE TOLD US? EASTERN EUROPEAN TRANSITIONING vs. DEVELOPED ECONOMIES," Journal of Economic Surveys, Wiley Blackwell, vol. 28(3), pages 516-550, July.

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    More about this item

    Keywords

    compensating differentials; propensity score matching; public sector;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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