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Public-Private Sector Wage Differential in the U.K

Hedley Rees and Anup Shah

The Manchester School of Economic & Social Studies, 1995, vol. 63, issue 1, 52-68

Abstract: Data from the General Household Surveys of 1983, 1985, and 1987 reveal that hourly wages for public sector workers exceeds that for private sector workers. This difference is greater for females than males but fell in the middle 1980s only to rise again by 1987. Wage equations are estimated and differences are decomposed into two components representing changes in composition and changes in characteristics. The authors conclude that wage changes over the period 1983-85 were more favorable to the private sector but the period from 1985-87 was more favorable to the public sector. Copyright 1995 by Blackwell Publishers Ltd and The Victoria University of Manchester

Date: 1995
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