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Pay Differentials between Government and Private Sector Employees in Sweden

Author

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  • Gustafsson, Siv

    (Research Institute of Industrial Economics (IFN))

Abstract

The human capital model predicts that in equilibrium and in the absence of discrimination units of human capital possessed by individuals are paid the same rentals. This would hold also when comparing private and government sectors. Only non-pecuniary rewards such as better job security of fringe benefits would lead to acceptance of lower money payment. In Sweden salary differentials standardized for human capital variables are found to be in favour of private sector employment. This result contrasts with recent findings for the USA where the reverse was found.

Suggested Citation

  • Gustafsson, Siv, 1977. "Pay Differentials between Government and Private Sector Employees in Sweden," Working Paper Series 15, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0015
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    References listed on IDEAS

    as
    1. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    2. Sharon P. Smith, 1976. "Government Wage Differentials by Sex," Journal of Human Resources, University of Wisconsin Press, vol. 11(2), pages 185-199.
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    Cited by:

    1. Eliasson, Gunnar, 1983. "The Swedish Micro-to-Macro Model: Idea, Design and Application," Working Paper Series 103, Research Institute of Industrial Economics.

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    More about this item

    Keywords

    Wage; Private sector; Public sector;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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