Interactions between private and public sector wages
Antonio Afonso and
Pedro Gomes
No 971, Working Paper Series from European Central Bank
Abstract:
We analyse the interactions between public and private sector wages per employee in OECD countries. We motivate the analysis with a dynamic labour market equilibrium model with search and matching frictions to study the effects of public sector employment and wages on the labour market, particularly on private sector wages. Our empirical evidence shows that the growth of public sector wages and of public sector employment positively affects the growth of private sector wages. Moreover, total factor productivity, the unemployment rate, hours per worker, and inflation, are also important determinants of private sector wage growth. With respect to public sector wage growth, we find that, in addition to some market related variables, it is also influenced by fiscal conditions. JEL Classification: E24, E62, H50
Keywords: employment; private wages; public wages (search for similar items in EconPapers)
Date: 2008-11
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (31)
Downloads: (external link)
https://www.ecb.europa.eu//pub/pdf/scpwps/ecbwp971.pdf (application/pdf)
Related works:
Journal Article: Interactions between private and public sector wages (2014) 
Working Paper: Interactions between Private and Public Sector Wages (2010) 
Working Paper: Interactions between Private and Public Sector Wages (2008) 
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:ecb:ecbwps:2008971
Access Statistics for this paper
More papers in Working Paper Series from European Central Bank 60640 Frankfurt am Main, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Official Publications ().