The Public Sector Pay Gap in a Selection of Euro Area Countries

42 Pages Posted: 15 Dec 2011

See all articles by Raffaela Giordano

Raffaela Giordano

Bank of Italy

Domenico Depalo

Bank of Italy

Manuel Coutinho Pereira

affiliation not provided to SSRN

Bruno Eugène

National Bank of Belgium

Evangelia Papapetrou

Bank of Greece

Javier J. Pérez

Banco de España - Research Department

Lukas Reiss

affiliation not provided to SSRN

Mojca Roter

Bank of Slovenia

Date Written: November 28, 2011

Abstract

We investigate the public-private wage differentials in ten euro area countries (Austria, Belgium, France, Germany, Greece, Ireland, Italy, Portugal, Slovenia and Spain). To account for differences in employment characteristics between the two sectors, we focus on micro data taken from EU-SILC. The results point to a conditional pay differential in favor of the public sector that is generally higher for women, at the low tail of the wage distribution, in the Education and the Public administration sectors rather than in the Health sector. Notable differences emerge across countries, with Greece, Ireland, Italy, Portugal and Spain exhibiting higher public sector premia than other countries.

Keywords: wage differentials, public/private sector

JEL Classification: J310, J450, O520

Suggested Citation

Giordano, Raffaela and Depalo, Domenico and Pereira, Manuel Coutinho and Eugène, Bruno and Papapetrou, Evangelia and Perez, Javier J. and Reiss, Lukas and Roter, Mojca, The Public Sector Pay Gap in a Selection of Euro Area Countries (November 28, 2011). ECB Working Paper No. 1406. Available at SSRN: https://ssrn.com/abstract=1965450

Raffaela Giordano (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
00184 Roma
Italy

Domenico Depalo

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Manuel Coutinho Pereira

affiliation not provided to SSRN ( email )

Bruno Eugène

National Bank of Belgium ( email )

Brussels, B-1000
Belgium

Evangelia Papapetrou

Bank of Greece ( email )

21 E. Venizelos Avenue
GR 102 50 Athens
Greece

Javier J. Perez

Banco de España - Research Department ( email )

Alcala 50
28014 Madrid
Spain

HOME PAGE: http://www.bde.es/investigador/staff/95.htm

Lukas Reiss

affiliation not provided to SSRN ( email )

Mojca Roter

Bank of Slovenia ( email )

Slovenska cesta 35
Slovenija, 1505
Slovenia

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