“…Despite the severity of wage cuts, the question on the appropriateness of the structure and level of public sector wages was often neglected in the midst of discussions on fiscal consolidation. In the last few years, however, there has been a growing interest in the interaction between wages in public and private sectors (Campos, Depalo, Papapetrou, Perez, & Ramos, 2017;European Commission, 2014;Holm-Hadulla, Kamath, Lamo, Perez, & Schuknecht, 2010).…”