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Does it Pay to Work in the Public Sector? Evidence from Three Decades of Econometric Analyses

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  • Nigel F. B. Allington
  • Philip I. Morgan

Abstract

Evidence suggests there were some large positive pay premiums in the UK public sector between the 1970s and early 1980s, but by the end of the 1990s only female public sector workers benefited from working in the public sector. The gradual erosion of other traditional benefits of working in the sector, such as greater job security and more generous pension entitlements, reinforces this conclusion. In addition to indicating where further research is required, this article presents a full taxonomy of the econometric results and addresses New Labour's renewed emphasis on regional pay (to reflect the regional cost of living) that should be of interest to practising managers concerned with recruitment, retention and motivation of public sector employees.

Suggested Citation

  • Nigel F. B. Allington & Philip I. Morgan, 2003. "Does it Pay to Work in the Public Sector? Evidence from Three Decades of Econometric Analyses," Public Money & Management, Taylor & Francis Journals, vol. 23(4), pages 253-262, October.
    • Handle: RePEc:taf:pubmmg:v:23:y:2003:i:4:p:253-262
    DOI: 10.1111/1467-9302.00380
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    References listed on IDEAS

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    1. Disney, Richard F & Gosling, Amanda, 2003. "A New Method for Estimating Public Sector Pay Premia: Evidence from Britain in the 1990's," CEPR Discussion Papers 3787, C.E.P.R. Discussion Papers.
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    Cited by:

    1. Paul Grout & Silvia Sonderegger, 2006. "Simple money-based tests for choosing between private and public delivery: a discussion of the issues," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 29(1), pages 93-126, September.
    2. VAN KERM Philippe & YU Keming & ZHANG Jin, 2004. "Bayesian quantile regression: An application to the wage distribution in 1990s Britain," IRISS Working Paper Series 2004-10, IRISS at CEPS/INSTEAD.

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