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Public-Sector Wage Comparability: The Role of Earnings Dispersion

Author

Listed:
  • Dale Belman

    (Michigan State University)

  • John S. Heywood

    (University of Wisconsin-Milwaukee)

Abstract

Economists use average wage differentials to examine whether public- and private-sector workers have comparable earnings. Such average differentials, originally developed for other purposes, fail to measure the true distance from comparability. In short, if average earnings in the public and private sectors are identical, earnings need not be comparable. The authors develop alternative statistical measures of comparability that demonstrate that differences in average earnings contribute only modestly to deviations from comparability and that state and local governments in the United States deviate more from comparability than does the federal government.

Suggested Citation

  • Dale Belman & John S. Heywood, 2004. "Public-Sector Wage Comparability: The Role of Earnings Dispersion," Public Finance Review, , vol. 32(6), pages 567-587, November.
    • Handle: RePEc:sae:pubfin:v:32:y:2004:i:6:p:567-587
    DOI: 10.1177/1091142104269657
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Morikawa, Masayuki, 2016. "A comparison of the wage structure between the public and private sectors in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 39(C), pages 73-90.
    2. Jeffrey Keefe, 2012. "Public Employee Compensation and the Efficacy of Privatization Alternatives in US State and Local Governments," British Journal of Industrial Relations, London School of Economics, vol. 50(4), pages 782-809, December.
    3. Danzer, Alexander M. & Dolton, Peter J., 2012. "Total Reward and pensions in the UK in the public and private sectors," Labour Economics, Elsevier, vol. 19(4), pages 584-594.
    4. Terhi Maczulskij, 2015. "Who chooses to become a public sector employee?," Working Papers 301, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    5. Gabriela Grotkowska & Leszek Wincenciak & Tomasz Gajderowicz, 2018. "Public–private wage differential in a post‐transition economy," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 26(3), pages 495-522, July.
    6. Gabriela Grotkowska & Leszek Wincenciak & Tomasz Gajderowicz, 2017. "Evolution of the Public-Sector Wage Premium in Poland," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 1, pages 5-31.
    7. David Lewin & Jeffrey H. Keefe & Thomas A. Kochan, 2012. "The New Great Debate about Unionism and Collective Bargaining in U.S. State and Local Governments," ILR Review, Cornell University, ILR School, vol. 65(4), pages 749-778, October.
    8. Jelena Lausev, 2014. "WHAT HAS 20 YEARS OF PUBLIC–PRIVATE PAY GAP LITERATURE TOLD US? EASTERN EUROPEAN TRANSITIONING vs. DEVELOPED ECONOMIES," Journal of Economic Surveys, Wiley Blackwell, vol. 28(3), pages 516-550, July.
    9. Evangelia Papapetrou, 2006. "The Public-Private Sector Pay Differential in Greece," Public Finance Review, , vol. 34(4), pages 450-473, July.
    10. Danzer, Alexander M. & Dolton, Peter, 2011. "Total Reward in the UK in the Public and Private Sectors," IZA Discussion Papers 5656, Institute of Labor Economics (IZA).

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