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The Public Sector Pay Gap in France, Great Britain and Italy

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Listed author(s):
  • Lucifora, Claudio

    ()

    (Università Cattolica del Sacro Cuore)

  • Meurs, Dominique

    ()

    (University Paris Ouest-Nanterre)

Abstract

We investigate public-private pay determination using French, British and Italian microdata. While traditional methods focus on parametric methods to estimate the public sector pay gap, in this paper, we use both non-parametric (kernel) and quantile regression methods to analyse the distribution of wages across sectors. We show that the public-private (hourly) wage differential is sensitive to the choice of quantile and that the pattern of premia varies with both gender and skill. In all countries the public sector is found to pay more low skilled workers with respect to the private sector, whilst the reverse is true for high skilled workers. The effects are more pronounced for females.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1041.

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Length: 22 pages
Date of creation: Mar 2004
Publication status: published in: Review of Income and Wealth, 2003, 52(1), 43-59
Handle: RePEc:iza:izadps:dp1041
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Keywords: quantile regression; public sector; wage differentials;

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Find related papers by 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
  • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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