EconPapers    
Economics at your fingertips  
 

The Lifetime Earnings Premium in the Public Sector: The View from Europe

Matt Dickson (), Fabien Postel-Vinay () and Hélène Turon ()

Sciences Po publications from Sciences Po

Abstract: n a context of widespread concern about budget deficits, it is important to assess whether public sector pay is in line with the private sector. Our paper proposes an estimation of differences in lifetime values of employment between public and private sectors for five European countries. We use data from the European Community Household Panel over the period 1994–2001 for Germany, the Netherlands, France, Italy and Spain. We look at lifetime values instead of wage levels because, as we show in our results, differences in earnings mobility, earnings volatility and job loss risk across sectors occur in many instances and these will matter to forward-looking individuals. When aggregated into a measure of lifetime value of employment in either sector, these differences yield estimates of the lifetime premium in the public sector for these five countries. We also present differences in the institutional and labour market structures in these countries and find that countries for which we estimate a positive lifetime premium in the public sector, i.e. France and Spain, are also the countries where access to the public sector requires costly entry procedures. This paper is to the best of our knowledge the first to use this dynamic approach applied to Europe, which we are able to do with a common dataset, time-period and model.

Keywords: Income Dynamics; Job Mobility; Public-private Inequality; Selection Effects; Institutions (search for similar items in EconPapers)
JEL-codes: J45 J31 J62 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dem and nep-eec
Date: 2014-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14) Track citations by RSS feed

Published in Labour Economics, 2014, vol. 31, pp.141-161

Downloads: (external link)
https://spire.sciencespo.fr/hdl:/2441/1frfnu9k0921 ... remium-v-editeur.pdf (application/pdf)

Related works:
Journal Article: The lifetime earnings premium in the public sector: The view from Europe (2014) Downloads
Working Paper: The Lifetime Earnings Premium in the Public Sector: The View from Europe (2014) Downloads
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:spo:wpmain:info:hdl:2441/1frfnu9k0921o6s94ptnm0q4o

Access Statistics for this paper

More papers in Sciences Po publications from Sciences Po Contact information at EDIRC.
Bibliographic data for series maintained by Spire @ Sciences Po Library ().

 
Page updated 2019-09-17
Handle: RePEc:spo:wpmain:info:hdl:2441/1frfnu9k0921o6s94ptnm0q4o