Flying high and laying low in the public and private sectors: a comparison of pay differentials for full-time male employees in Britain

Monojit Chatterji, Karen Mumford

    Research output: Working paperDiscussion paper

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    Abstract

    Using new linked employee-employer data for Britain in 2004, this paper shows that, on average, full-time male public sector employees earn 11.7 log wage points more than their private sector counterparts. Decomposition analysis reveals that the majority of this pay premium is associated with public sector employees having individual characteristics associated with higher pay and to their working in higher paid occupations. Further focussing analysis 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, and the unexplained components in these gaps are very similar regardless of sector.
    Original languageEnglish
    PublisherUniversity of Dundee
    Publication statusPublished - 2008

    Publication series

    NameDundee Discussion Papers in Economics
    PublisherUniversity of Dundee
    No.209
    ISSN (Print)1473-236X

    Keywords

    • Public sector earnings
    • Male
    • Fixed effects
    • Earnings-gap
    • Decompositions
    • Segregation

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  • Cite this

    Chatterji, M., & Mumford, K. (2008). Flying high and laying low in the public and private sectors: a comparison of pay differentials for full-time male employees in Britain. (Dundee Discussion Papers in Economics; No. 209). University of Dundee.