IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp3158.html
   My bibliography  Save this paper

The Public-Private Sector Gender Wage Differential: Evidence from Matched Employee-Workplace Data

Author

Listed:
  • Chatterji, Monojit

    (University of Dundee)

  • Mumford, Karen A.

    (University of York)

  • Smith, Peter N.

    (University of York)

Abstract

Using new linked employee-workplace 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 little 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, an important workplace characteristic for the public private pay gap is the presence of family-friendly employment practices. Increased provision is especially associated with higher relative earnings in the public sector for women.

Suggested Citation

  • Chatterji, Monojit & Mumford, Karen A. & Smith, Peter N., 2007. "The Public-Private Sector Gender Wage Differential: Evidence from Matched Employee-Workplace Data," IZA Discussion Papers 3158, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp3158
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp3158.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Karen Mumford & Peter N Smith, "undated". "The Gender Earnings Gap in Britain," Discussion Papers 04/05, Department of Economics, University of York.
    2. Gray, Helen, 2002. "Family-friendly working: what a performance! An analysis of the relationship between the availability of family-friendly policies and establishment performance," LSE Research Online Documents on Economics 20082, London School of Economics and Political Science, LSE Library.
    3. Claudio Lucifora & Dominique Meurs, 2006. "The Public Sector Pay Gap In France, Great Britain And Italy," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 52(1), pages 43-59, March.
    4. Hashimoto, Masanori, 1981. "Firm-Specific Human Capital as a Shared Investment," American Economic Review, American Economic Association, vol. 71(3), pages 475-482, June.
    5. Helen Simpson, 2009. "Productivity In Public Services," Journal of Economic Surveys, Wiley Blackwell, vol. 23(2), pages 250-276, April.
    6. Doris Weichselbaumer & Rudolf Winter‐Ebmer, 2005. "A Meta‐Analysis of the International Gender Wage Gap," Journal of Economic Surveys, Wiley Blackwell, vol. 19(3), pages 479-511, July.
    7. Kimberly Bayard & Judith Hellerstein & David Neumark & Kenneth Troske, 2003. "New Evidence on Sex Segregation and Sex Differences in Wages from Matched Employee-Employer Data," Journal of Labor Economics, University of Chicago Press, vol. 21(4), pages 887-922, October.
    8. Mark B. Stewart, 1983. "On Least Squares Estimation when the Dependent Variable is Grouped," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 50(4), pages 737-753.
    9. Astrid Kunze, 2008. "Gender wage gap studies: consistency and decomposition," Empirical Economics, Springer, vol. 35(1), pages 63-76, August.
    10. Altonji, Joseph G. & Blank, Rebecca M., 1999. "Race and gender in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 48, pages 3143-3259, Elsevier.
    11. Filipe Almeida‐Santos & Karen Mumford, 2005. "Employee Training And Wage Compression In Britain," Manchester School, University of Manchester, vol. 73(3), pages 321-342, June.
    12. Fabien Postel-Vinay & Hélène Turon, 2007. "The Public Pay Gap in Britain: Small Differences That (Don't?) Matter," Economic Journal, Royal Economic Society, vol. 117(523), pages 1460-1503, October.
    13. Erica L. Groshen, 1991. "The Structure of the Female/Male Wage Differential: Is It Who You Are, What You Do, or Where You Work?," Journal of Human Resources, University of Wisconsin Press, vol. 26(3), pages 457-472.
    14. Bhaskar, V & To, Ted, 1999. "Minimum Wages for Ronald McDonald Monopsonies: A Theory of Monopsonistic Competition," Economic Journal, Royal Economic Society, vol. 109(455), pages 190-203, April.
    15. Alan Manning & Barbara Petrongolo, 2008. "The Part-Time Pay Penalty for Women in Britain," Economic Journal, Royal Economic Society, vol. 118(526), pages 28-51, February.
    16. Simon Burgess & Marisa Ratto, 2003. "The Role of Incentives in the Public Sector: Issues and Evidence," The Centre for Market and Public Organisation 03/071, The Centre for Market and Public Organisation, University of Bristol, UK.
    17. Robert Elliott & Claudio Lucifora & Dominique Meurs, 1999. "Public Sector Pay Determination in the European Union: Issues and Outcomes," Palgrave Macmillan Books, in: Robert Elliott & Claudio Lucifora & Dominique Meurs (ed.), Public Sector Pay Determination in the European Union, chapter 1, pages 1-28, Palgrave Macmillan.
    18. Karen Mumford & Peter N. Smith, "undated". "Job Tenure in Australia and Britain: Individual Versus Workplace effects," Discussion Papers 00/16, Department of Economics, University of York.
    19. Abowd, John M. & Kramarz, Francis & Margolis, David N. & Troske, Kenneth R., 2001. "The Relative Importance of Employer and Employee Effects on Compensation: A Comparison of France and the United States," Journal of the Japanese and International Economies, Elsevier, vol. 15(4), pages 419-436, December.
    20. Robert Elliott & Claudio Lucifora & Dominique Meurs (ed.), 1999. "Public Sector Pay Determination in the European Union," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-14946-9.
    21. Richard Disney & Amanda Gosling, 1998. "Does it pay to work in the public sector?," Fiscal Studies, Institute for Fiscal Studies, vol. 19(4), pages 347-374, November.
    22. Barton H. Hamilton & Jack A. Nickerson & Hideo Owan, 2003. "Team Incentives and Worker Heterogeneity: An Empirical Analysis of the Impact of Teams on Productivity and Participation," Journal of Political Economy, University of Chicago Press, vol. 111(3), pages 465-497, June.
    23. repec:rus:hseeco:124059 is not listed on IDEAS
    24. Simon Burgess & Marisa Ratto, 2003. "The Role of Incentives in the Public Sector: Issues and Evidence," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 19(2), pages 285-300, Summer.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yekaterina Chzhen & Karen Mumford, "undated". "Gender Gaps Across the Earnings Distribution in Britain: Are Women Bossy Enough?," Discussion Papers 09/27, Department of Economics, University of York.
    2. Liviu Voinea, 2011. "A Contribution to the Public-Private Wage Inequality Debate: The Iconic Case of Romania," wiiw Balkan Observatory Working Papers 93, The Vienna Institute for International Economic Studies, wiiw.
    3. Liviu Voinea & Flaviu Mihaescu, 2012. "A contribution to the public–private wage inequality debate," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 20(2), pages 315-337, April.
    4. Lixin Cai & Amy Y. C. Liu, 2011. "Public–Private Sector Wage Gap in Australia: Variation along the Distribution," British Journal of Industrial Relations, London School of Economics, vol. 49(2), pages 362-390, June.
    5. 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.
    6. 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.
    7. Lixin Cai & Amy Y.C. Liu, 2008. "Public-Private Wage Gap in Australia: Variation Along the Distribution," CEPR Discussion Papers 581, Centre for Economic Policy Research, Research School of Economics, Australian National University.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Mumford, Karen A. & Smith, Peter N., 2007. "Assessing the Importance of Male and Female Part-Time Work for the Gender Earnings Gap in Britain," IZA Discussion Papers 2981, Institute of Labor Economics (IZA).
    3. Bargain, Olivier & Melly, Blaise, 2008. "Public Sector Pay Gap in France: New Evidence Using Panel Data," IZA Discussion Papers 3427, Institute of Labor Economics (IZA).
    4. Karen Mumford & Monojit Chatterji, 2012. "Flying High and Laying Low in the Public and Private Sectors: A Comparison of Pay Differentials for Male, Full-Time Employees," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 15(3), pages 235-259.
    5. Marie Drolet & Karen Mumford, 2012. "The Gender Pay Gap for Private-Sector Employees in Canada and Britain," British Journal of Industrial Relations, London School of Economics, vol. 50(3), pages 529-553, September.
    6. Domenico Depalo & Raffaella Giordano, 2011. "The public-private pay gap: a robust quantile approach," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 70(1), pages 25-64, January.
    7. Sarah Louise Jewell & Giovanni Razzu & Carl Singleton, 2020. "Who Works for Whom and the UK Gender Pay Gap," British Journal of Industrial Relations, London School of Economics, vol. 58(1), pages 50-81, March.
    8. Philip Murphy & David Blackaby & Nigel O'Leary & Anita Staneva, 2020. "Understanding What Has Been Happening to the Public‐Sector Pay Premium in Great Britain: A Distributional Approach Based on the Labour Force Survey," British Journal of Industrial Relations, London School of Economics, vol. 58(2), pages 273-300, June.
    9. Yekaterina Chzhen & Karen Mumford, "undated". "Gender Gaps Across the Earnings Distribution in Britain: Are Women Bossy Enough?," Discussion Papers 09/27, Department of Economics, University of York.
    10. Karen Mumford & Peter N Smith, "undated". "The Gender Earnings Gap in Britain," Discussion Papers 04/05, Department of Economics, University of York.
    11. Chatterji, Monojit & Mumford, Karen A., 2007. "The Public-Private Sector Wage Differential for Full-Time Male Employees in Britain: A Preliminary Analysis," IZA Discussion Papers 2781, Institute of Labor Economics (IZA).
    12. Paolo Ghinetti & Claudio Lucifora, 2008. "Public Sector Pay Gaps and Skill Levels: a Cross-Country Comparison," Working Papers 118, SEMEQ Department - Faculty of Economics - University of Eastern Piedmont.
    13. Vladimir Gimpelson & Anna Lukiyanova & Anna Sharunina, 2015. "Estimating the Public-Private Wage Gap in Russia: What Does Quantile Regression Tell Us?," HSE Working papers WP BRP 104/EC/2015, National Research University Higher School of Economics.
    14. Gabriela Grotkowska & Leszek Wincenciak, 2014. "Public sector wage premium in Poland: can it be explained by structural differences in employment?," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 38.
    15. Olga Takacs & Janos Vincze, 2019. "The gender pay gap in Hungary: new results with a new methodology," CERS-IE WORKING PAPERS 1924, Institute of Economics, Centre for Economic and Regional Studies.
    16. Lixin Cai & Amy Y.C. Liu, 2008. "Public-Private Wage Gap in Australia: Variation Along the Distribution," CEPR Discussion Papers 581, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    17. Alejandra Mizala & Pilar Romaguera & Sebastian Gallegos, 2010. "Public-Private Wage Gap In Latin America (1999-2007): A Matching Approach," Documentos de Trabajo 268, Centro de Economía Aplicada, Universidad de Chile.
    18. Simon Burgess & Carol Propper & Marisa Ratto & Emma Tominey, 2017. "Incentives in the Public Sector: Evidence from a Government Agency," Economic Journal, Royal Economic Society, vol. 127(605), pages 117-141, October.
    19. Nikolaos Theodoropoulos & John Forth & Alex Bryson, 2019. "Are Women Doing It For Themselves? Gender Segregation and the Gender Wage Gap," DoQSS Working Papers 19-07, Quantitative Social Science - UCL Social Research Institute, University College London.
    20. Domenico Depalo & Raffaela Giordano & Evangelia Papapetrou, 2015. "Public–private wage differentials in euro-area countries: evidence from quantile decomposition analysis," Empirical Economics, Springer, vol. 49(3), pages 985-1015, November.

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp3158. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.