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Total Reward and pensions in the UK in the public and private sectors

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  • Danzer, Alexander M.
  • Dolton, Peter J.

Abstract

Recent controversy has surrounded the relative value of public and private sector remuneration. We propose a comprehensive measure of Total Reward (TR) which includes not just pay, but pensions and other ‘benefits in kind’, evaluate it as the present value of the sum of all these payments over the lifetime and compare it for the highly educated in the UK public and private sectors. Our results suggest that TR is broadly equalised over the lifecycle for highly educated men while highly educated women have a clear TR advantage in the public sector by the end of their career. We suggest that the current controversy over public–private sector pension differentials and the perennial issues of public/private sector pay gaps requires a lifetime perspective and that the concept of TR is appropriate.

Suggested Citation

  • Danzer, Alexander M. & Dolton, Peter J., 2012. "Total Reward and pensions in the UK in the public and private sectors," Labour Economics, Elsevier, vol. 19(4), pages 584-594.
  • Handle: RePEc:eee:labeco:v:19:y:2012:i:4:p:584-594 DOI: 10.1016/j.labeco.2012.05.010
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    Cited by:

    1. Morikawa, Masayuki, 2016. "A comparison of the wage structure between the public and private sectors in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 39(C), pages 73-90.
    2. Alexander M. Danzer & Peter Dolton & Chiara Rosazza Bondibene, 2016. "Who Wins? Evaluating the Impact of UK Public Sector Pension Scheme Reforms," National Institute Economic Review, National Institute of Economic and Social Research, vol. 237(1), pages 38-46, August.
    3. Barton, Nicholas & Bold, Tessa & Sandefur, Justin, 2017. "Measuring Rents from Public Employment: Regression discontinuity evidence from Kenya," CEPR Discussion Papers 12105, C.E.P.R. Discussion Papers.
    4. Nicholas Barton & Tessa Bold & Justin Sandefur, 2017. "Measuring Rents from Public Employment: Regression Discontinuity Evidence from Kenya - Working Paper 457," Working Papers 457, Center for Global Development.
    5. Natalia Danzer, 2013. "Job Satisfaction and Self-Selection into the Public or Private Sector: Evidence from a Natural Experiment," ifo Working Paper Series 169, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.

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