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The Rising Public Sector Pay Premium in the New Zealand Labour Market

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Author Info
John Gibson () (University of Waikato)

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Abstract

This note reports propensity score matching estimates of the public sector pay premium in New Zealand for each year from 2003 until 2007. Comparing with observably similar private sector workers shows that public sector workers have received a pay premium that has grown in each year, from almost zero in 2003 to 22 percent in 2007. Unless there have been unmeasured changes in the attributes of public sector jobs that give rise to compensating pay differentials, this rising public sector pay premium is most plausibly attributed to an increase in non-competitive rents.

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File URL: ftp://mngt.waikato.ac.nz/RePEc/wai/econwp/0816.pdf
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Publisher Info
Paper provided by University of Waikato, Department of Economics in its series Working Papers in Economics with number 08/16.

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Length: 9 pages
Date of creation: 25 Sep 2008
Date of revision:
Handle: RePEc:wai:econwp:08/16

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Related research
Keywords: compensating differentials; propensity score matching; public sector; wages;

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. 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, Department of Economics. [Downloadable!]
  2. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity score matching methods for non-experimental causal studies," Discussion Papers 0102-14, Columbia University, Department of Economics. [Downloadable!]
    Other versions:
  3. John Gibson & Chris Hector & Trinh Le, 2008. "The Distributional Impact of KiwiSaver Incentives," Working Papers in Economics 08/02, University of Waikato, Department of Economics. [Downloadable!]
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This page was last updated on 2009-10-31.

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