2017
DOI: 10.1186/s40173-017-0086-0
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Understanding the public sector pay gap

Abstract: We uncover the short-and long-run structural determinants of the existing cross-country heterogeneity in public-private pay differentials for a broad set of OECD countries. We explore micro data (EU-SILC, 2004-2012 and macro data . Three results stand out. First, when looking at pay gaps based on individual data, more than half of the cross-sectional variation of the sample can be accounted for by the degree of exposure to international competition, as well as by the size of the public sector labor force and i… Show more

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Cited by 27 publications
(25 citation statements)
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References 31 publications
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“…Public workers tend to make less in wages when adjusting for education. However they have other intangible benefits such as increased job security (Bellante, Link, & Bellante, 2014;Campos, Depalo, Papapetrou, & Ramos, 2015;Cohen & Duberley, 2015;Frank & Lewis, 2004).…”
Section: Differences Working In Public and Private Institutionsmentioning
confidence: 99%
“…Public workers tend to make less in wages when adjusting for education. However they have other intangible benefits such as increased job security (Bellante, Link, & Bellante, 2014;Campos, Depalo, Papapetrou, & Ramos, 2015;Cohen & Duberley, 2015;Frank & Lewis, 2004).…”
Section: Differences Working In Public and Private Institutionsmentioning
confidence: 99%
“…Using a broad sample of OECD countries Campos, Depalo, Papapetrou, Perez, and Ramos (2017) show that size and composition of the public sector contribute in explaining the cross-country variation in the public sector wage premium. They argue that countries with lower shares of government employees should also have higher public sector wage premium.…”
Section: Literature Reviewmentioning
confidence: 99%
“…He argues that since homogenous public sector wages need to be attractive in the highly productive regions, the same wage results in a high public sector wage premium in less productive regions. Campos et al (2017) show that countries with more stringent employment protection tend to have higher public sector wage premiums. They argue that higher public sector wages are needed to offset better (safer) conditions in the private sector.…”
Section: Literature Reviewmentioning
confidence: 99%
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“…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).…”
Section: Introductionmentioning
confidence: 99%