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The Public-Private Sector Wage Differential: Gender, Workplaces and Family Friendliness

Author

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  • Monojit Chatterji
  • Karen Mumford
  • Peter N Smith

Abstract

This study examines the role of individual characteristics, occupation, and workplace features accounting for differences in hourly earnings between male and female fulltime employees in the public and private sectors. Using new linked employeeemployer data for Britain in 2004, we find that the nature of the public private pay gap differs between genders and that of the gender pay gap differs between sectors. The analysis shows that essentially none of the gender earnings gap in both the public and private sector can be explained by differences in observable characteristics. Decomposition analysis further reveals that the contribution of differences in workplace characteristics to the public private earnings gap is sizeable and significant. Whilst the presence of performance related pay and company pension schemes is associated with higher relative earnings for those in the private sector, the key workplace characteristic for the public private pay gap is the presence of familyfriendly employment practices. Increased provision is associated with higher relative earnings in the public sector for both men and women.

Suggested Citation

  • Monojit Chatterji & Karen Mumford & Peter N Smith, 2007. "The Public-Private Sector Wage Differential: Gender, Workplaces and Family Friendliness," Dundee Discussion Papers in Economics 202, Economic Studies, University of Dundee.
    • Handle: RePEc:dun:dpaper:202
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    File URL: http://www.dundee.ac.uk/media/dundeewebsite/economicstudies/documents/discussion/DDPE_202.pdf
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    Cited by:

    1. Gonzalo F. Forgues‐Puccio & Erven Lauw, 2021. "Gender inequality, corruption, and economic development," Review of Development Economics, Wiley Blackwell, vol. 25(4), pages 2133-2156, November.
    2. Lovász, Anna, 2013. "Jobbak a nők esélyei a közszférában?. A nők és férfiak bérei közötti különbség és a foglalkozási szegregáció vizsgálata a köz- és magánszférában [Do women have better opportunities in the public se," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(7), pages 814-836.
    3. Jill Rubery, 2013. "Public sector adjustment and the threat to gender equality," Chapters, in: Daniel Vaughan-Whitehead (ed.), Public Sector Shock, chapter 2, pages 43-83, Edward Elgar Publishing.

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    More about this item

    Keywords

    public sector earnings; gender; gap; family friendly; decomposition;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J7 - Labor and Demographic Economics - - Labor Discrimination

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