Flying High and Laying Low in the Public and Private Sectors: A Comparison of Pay Differentials for Male, Full-Time Employees

Karen Mumford () and Monojit Chatterji
Additional contact information
Monojit Chatterji: University of Cambridge

Australian Journal of Labour Economics (AJLE), 2012, vol. 15, issue 3, 235-259

Abstract: Using linked employee-employer data, this paper shows that, on average, male full-time public sector employees in Britain earn 8.9 per cent more than their private sector counterparts. Analysis reveals that the majority of this pay premium is associated with public sector employees having individual characteristics typically associated with higher pay, especially working in higher paid occupations. Further focussing on the highly skilled and unskilled occupations in both sectors reveals evidence of workplace segregation positively impacting on earnings in the private sector for the highly skilled, and in the public sector for the unskilled. Substantial earnings gaps between the highly skilled and unskilled are found in both sectors; and the unexplained components in these gaps are shown to be very similar regardless of sector.

Keywords: Labor Discrimination; Wage differentials; Human Capital (search for similar items in EconPapers)
JEL-codes: J30 J70 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://ftprepec.drivehq.com/ozl/journl/downloads/AJLE153chatterji.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ozl:journl:v:15:y:2012:i:3:p:235-259

Access Statistics for this article

More articles in Australian Journal of Labour Economics (AJLE) from Bankwest Curtin Economics Centre (BCEC), Curtin Business School Contact information at EDIRC.
Bibliographic data for series maintained by Sandie Rawnsley ().