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The Consequences of The Decline in Public Sector Pay in Britain: A Little Bit of Evidence

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  • Stephen Nickell

    (London School of Economics and Bank of England Monetary Policy Committie)

  • Glenda Quintini

    (Credit Suisse First Boston)

Abstract

Following the fall in overall net public investment, the relative pay of most public sector workers in the United Kingdom declined sharply after the mid-1970s. For example, the relative pay of male teachers fell by over 10 percentage points from the late 1970s to the late 1980s. So has this generated a fall in quality? Using age 10/11 test score percentile positions as an indicator, we find that men entering non-manual public sector occupations in the early 1990s had a significantly lower test score position than those entering in the late 1970s. No such falls were exhibited by women. Copyright Royal Economic Society 2002

Suggested Citation

  • Stephen Nickell & Glenda Quintini, 2002. "The Consequences of The Decline in Public Sector Pay in Britain: A Little Bit of Evidence," Economic Journal, Royal Economic Society, vol. 112(477), pages 107-118, February.
  • Handle: RePEc:ecj:econjl:v:112:y:2002:i:477:p:f107-f118
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    References listed on IDEAS

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    1. Dearden, Lorraine, 1999. "The effects of families and ability on men's education and earnings in Britain1," Labour Economics, Elsevier, vol. 6(4), pages 551-567, November.
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