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Public-Private Wage Differentials in Ireland, 1994-2001

  • Gerry Boyle

    ()

    (National University of Ireland, Maynooth)

  • Rory McElligott

    (National University of Ireland, Maynooth)

  • Jim O'Leary

    (National University of Ireland, Maynooth)

Are public sector workers in Ireland paid more than private sector employees, when such differences in productivity-related personal attributes and job characteristics are controlled for? We estimate that in 2001 the premium enjoyed by public servants was about 13 per cent. We find that the premium, is significantly bigger for those near the bottom of the earnings distribution than for those near the top, was significantly bigger for women than men in the mid-1990s but not at the end of the 1990s, and does not vary significantly across different levels of educational attainment. We estimate the premium for 2001 to be not significantly different from that estimated for 1994 despite this period a period of exceptionally rapid output and employment growth, and correspondingly sharp tightening of labour market conditions in the Irish economy. The most remarkable difference between our results and those of other researchers for other countries relates to the absolute size of the premium. A number of possible explanations for this difference are discussed.

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File URL: http://repec.maynoothuniversity.ie/mayecw-files/N1421004.pdf
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Paper provided by Department of Economics, Finance and Accounting, National University of Ireland - Maynooth in its series Economics, Finance and Accounting Department Working Paper Series with number n1421004.

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Length: 42 pages
Date of creation: Oct 2004
Date of revision:
Handle: RePEc:may:mayecw:n1421004
Contact details of provider: Postal: Maynooth, Co. Kildare
Phone: 353-1-7083728
Fax: 353-1-7083934
Web page: http://www.maynoothuniversity.ie/economics-finance-and-accounting

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  1. Denis Conniffe & Vanessa Gash & Philip J. O'Connell, 2000. "Evaluating State Programmes - “Natural Experiments” and Propensity Scores," The Economic and Social Review, Economic and Social Studies, vol. 31(4), pages 283-308.
  2. Richard B. Freeman, 1983. "Longitudinal Analyses of the Effects of Trade Unions," NBER Working Papers 1207, National Bureau of Economic Research, Inc.
  3. Blaise Melly, 2005. "Public-private sector wage differentials in Germany: Evidence from quantile regression," Empirical Economics, Springer, vol. 30(2), pages 505-520, 09.
  4. Duffy, David & FitzGerald, John & Kennedy, Kieran A. & Smyth, Diarmaid, 2000. "Quarterly Economic Commentary, March 2000," Forecasting Report, Economic and Social Research Institute (ESRI), number QEC20001, March.
  5. 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.
  6. James M. Poterba & Kim S. Rueben, 1994. "The Distribution of Public Sector Wage Premia: New Evidence Using Quantile Regression Methods," NBER Working Papers 4734, National Bureau of Economic Research, Inc.
  7. J.-Matthias Graf Schulenburg, 2002. "Commentary," The European Journal of Health Economics, Springer, vol. 3(2), pages 138-138, June.
  8. Casey, Barra, 2004. "An Economy-Wide Perspective on Earnings Data in Ireland," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI), vol. 2004(1-Spring), pages 1-22.
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