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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.

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File URL: ftp://mngt.waikato.ac.nz/RePEc/wai/econwp/0720.pdf
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Bibliographic Info

Paper provided by University of Waikato, Department of Economics in its series Working Papers in Economics with number 07/20.

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Length: 15 pages
Date of creation: 10 2007
Date of revision:
Handle: RePEc:wai:econwp:07/20

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Keywords: compensating differentials; propensity score matching; public sector;

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  1. 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, 06.
  2. 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.
  3. Don Bellante & Albert N. Link, 1981. "Are public sector workers more risk averse than private sector workers?," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 34(3), pages 408-412, April.
  4. Dahlberg, Matz & Mörk, Eva, 2005. "Public Employment and the Double Role of Bureaucrats," Working Paper Series 2005:3, Uppsala University, Department of Economics.
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Cited by:
  1. John Gibson, 2008. "The Rising Public Sector Pay Premium in the New Zealand Labour Market," Working Papers in Economics 08/16, University of Waikato, Department of Economics.

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