Flying High and Laying Low in the Public and Private Sectors: A Comparison of Pay Differentials for Full-Time Male Employees in Britain
Using new linked employee-employer data for Britain in 2004, this paper shows that, on average, full-time male public sector employees earn 11.7 log wage points more than their private sector counterparts. Decomposition analysis reveals that the majority of this pay premium is associated with public sector employees having individual characteristics associated with higher pay and to their working in higher paid occupations. Further focussing analysis on the highly skilled and unskilled occupations in both sectors, reveals evidence of workplace segregation positively impacting on earnings in the private sector for the highly skilled, and in the public sector for the unskilled. Substantial earnings gaps between the highly skilled and unskilled are found, and the unexplained components in these gaps are very similar regardless of sector.
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- Karen Mumford & Peter N. Smith, 2004.
"Job Tenure in Britain: Employee Characteristics versus Workplace Effects,"
London School of Economics and Political Science, vol. 71(281), pages 275-297, 05.
- Karen Mumford & Peter N Smith, "undated". "Job Tenure in Britain: Employee Characteristics Versus Workplace Effects," Discussion Papers 04/06, Department of Economics, University of York.
- Mumford, Karen A. & Smith, Peter N., 2004. "Job Tenure in Britain: Employee Characteristics Versus Workplace Effects," IZA Discussion Papers 1085, Institute for the Study of Labor (IZA).
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- David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
- David Neumark, 1987. "Employers' discriminatory behavior and the estimation of wage discrimination," Special Studies Papers 227, Board of Governors of the Federal Reserve System (U.S.).
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