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Regional pay? The public/private sector pay differential

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  • David Blackaby
  • Philip Murphy
  • Nigel O’Leary
  • Anita Staneva

Abstract

Regional pay? The public/private sector pay differential. Regional Studies. This paper extends the debate on making public sector wages more responsive to those in the private sector. The way in which the public/private sector wage differential is calculated dramatically alters conclusions, and far from there being substantial regional disparity in wages offered to public sector workers, any differences are predominantly concentrated in London and the South East where public sector workers are significantly disadvantaged relative to private sector workers. This has implications for staff recruitment and retention. Such findings question the need for regional market-facing pay, but highlight the necessity to revisit the London-weighting offered to public sector workers.

Suggested Citation

  • David Blackaby & Philip Murphy & Nigel O’Leary & Anita Staneva, 2018. "Regional pay? The public/private sector pay differential," Regional Studies, Taylor & Francis Journals, vol. 52(4), pages 477-489, April.
    • Handle: RePEc:taf:regstd:v:52:y:2018:i:4:p:477-489
    DOI: 10.1080/00343404.2017.1331295
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    Cited by:

    1. Bonaccolto-Töpfer, Marina & Castagnetti, Carolina & Prümer, Stephanie, 2022. "Understanding the public-private sector wage gap in Germany: New evidence from a Fixed Effects quantile Approach∗," Economic Modelling, Elsevier, vol. 116(C).
    2. Galanakis, Yannis, 2020. "Female Human Capital Mismatch: An extension for the British public sector," GLO Discussion Paper Series 669, Global Labor Organization (GLO).
    3. Melanie Jones & Ezgi Kaya, 2022. "The gender pay gap: what can we learn from Northern Ireland? [Women’s labour market participation in Northern Ireland: a re-examination of the ‘traditionalism’ argument]," Oxford Economic Papers, Oxford University Press, vol. 74(1), pages 94-114.
    4. Naeem Akram, 2022. "Public-Private Wage Differentials: Evidence from Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 27(2), pages 39-64, July-Dec.
    5. Philip Murphy & David Blackaby & Nigel O'Leary & Anita Staneva, 2020. "Understanding What Has Been Happening to the Public‐Sector Pay Premium in Great Britain: A Distributional Approach Based on the Labour Force Survey," British Journal of Industrial Relations, London School of Economics, vol. 58(2), pages 273-300, June.

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