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The public sector pay gap in a selection of Euro area countries

Author

Listed:
  • Pérez, Javier J.
  • Giordano, Raffaela
  • Depalo, Domenico
  • Coutinho Pereira, Manuel
  • Eugène, Bruno
  • Papapetrou, Evangelia
  • Reiss, Lukas
  • Roter, Mojca

Abstract

We investigate the public-private wage differentials in ten euro area countries (Austria, Belgium, France, Germany, Greece, Ireland, Italy, Portugal, Slovenia and Spain). To account for differences in employment characteristics between the two sectors, we focus on micro data taken from EU-SILC. The results point to a conditional pay differential in favour of the public sector that is generally higher for women, at the low tail of the wage distribution, in the Education and the Public administration sectors rather than in the Health sector. Notable differences emerge across countries, with Greece, Ireland, Italy, Portugal and Spain exhibiting higher public sector premia than other countries. JEL Classification: J31, J45, O52

Suggested Citation

  • Pérez, Javier J. & Giordano, Raffaela & Depalo, Domenico & Coutinho Pereira, Manuel & Eugène, Bruno & Papapetrou, Evangelia & Reiss, Lukas & Roter, Mojca, 2011. "The public sector pay gap in a selection of Euro area countries," Working Paper Series 1406, European Central Bank.
  • Handle: RePEc:ecb:ecbwps:20111406
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    References listed on IDEAS

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    Keywords

    public/private sector; wage differentials;

    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
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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