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

  • Chatterji, Monojit


    (University of Dundee)

  • Mumford, Karen A.


    (University of York)

  • Smith, Peter N.


    (University of York)

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.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3158.

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Length: 31 pages
Date of creation: Nov 2007
Date of revision:
Publication status: published as 'The public-private sector gender wage differential in Britain: evidence from matched employee-workplace data ' in: Applied Economics, 2011, 43 (26), 3819 - 3833
Handle: RePEc:iza:izadps:dp3158
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  1. 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, 07.
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