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The public sector pay gap in France, Great Britain and Italy

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Lucifora, Claudio ; Meurs, Dominique

Institute of Labor Economics, Bonn

IZA - Bonn

2004

20 p.

comparison ; private sector ; public sector ; wage differential

France ; Italy ; United Kingdom

Discussion Paper Series

1041

Wages and wage payment systems

http://www.iza.org/

English

Bibliogr.

"We investigate public-private pay determination using French, British and Italian microdata. While traditional methods focus on parametric methods to estimate the public sector pay gap, in this paper, we use both non-parametric (kernel) and quantile regression methods to analyse the distribution of wages across sectors. We show that the public-private (hourly) wage differential is sensitive to the choice of quantile and that the pattern of premia varies with both gender and skill. In all countries the public sector is found to pay more low skilled workers with respect to the private sector, whilst the reverse is true for high skilled workers. The effects are more pronounced for females."

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