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Public and Private Sector Labour Markets

In: The Labour Market Under New Labour

Author

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  • Peter Dolton
  • Steven McIntosh

Abstract

Average pay is higher in the public sector than in the private sector, although the difference has shrunk over the last 25 years. The distribution of pay is narrower in the public sector than in the private sector. The public-private sector pay differential is higher for women than for men. In recent years, private sector pay in professional occupations has overtaken public sector pay in these occupations, particularly for men. The public-private sector pay differential is lowest in London and the South-East, and indeed is now negative for men in these regions. The public-private sector pay differential is lowest for graduates, and again has recently become negative for male graduates. Public sector workers are less likely to report that they have a competitive salary or work for a progressive organisation, although they report more challenging work, more socially useful work, and greater long-term security.

Suggested Citation

  • Peter Dolton & Steven McIntosh, 2003. "Public and Private Sector Labour Markets," Palgrave Macmillan Books, in: Richard Dickens & Paul Gregg & Jonathan Wadsworth (ed.), The Labour Market Under New Labour, chapter 14, pages 214-231, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-59845-4_15
    DOI: 10.1057/9780230598454_15
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    Cited by:

    1. Dolton, Peter & Makepeace, Gerry, 2008. "The Impact of the Public Sector Pay Review Bodies in the UK," IZA Discussion Papers 3373, Institute of Labor Economics (IZA).
    2. Leuze, Kathrin, 2010. "Smooth Path or Long and Winding Road? How Institutions Shape the Transition from Higher Education to Work," EconStor Books, ZBW - Leibniz Information Centre for Economics, number 251573, September.

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