IDEAS home Printed from https://ideas.repec.org/p/wai/econwp/07-20.html
   My bibliography  Save this paper

The Public Sector Pay Premium and Compensating Differentials in the New Zealand Labour Market

Author

Abstract

In this note, propensity score matching (PSM) methods are applied to data from the 2005 International Social Survey Program Work Orientations (ISSP-WO) survey to examine the public sector pay premium in New Zealand. Taking account of a wide range of worker characteristics and attitudes, job attributes, and the effects that jobs have on workers and their family life, there appears to be a pay premium from working in the public sector of 17 to 21 percent.

Suggested Citation

  • John Gibson, 2007. "The Public Sector Pay Premium and Compensating Differentials in the New Zealand Labour Market," Working Papers in Economics 07/20, University of Waikato.
    • Handle: RePEc:wai:econwp:07/20
    as

    Download full text from publisher

    File URL: https://repec.its.waikato.ac.nz/wai/econwp/0720.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. David Blanchflower, 1996. "The Role and Influence of Trade Unions in the OECD," CEP Discussion Papers dp0310, Centre for Economic Performance, LSE.
    2. Dahlberg, Matz & Mörk, Eva, 2004. "Public employment and the double role of bureaucrats," Working Paper Series 2004:11, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    3. Michael Demoussis & Nicholas Giannakopoulos, 2007. "Exploring Job Satisfaction in Private and Public Employment: Empirical Evidence from Greece," LABOUR, CEIS, vol. 21(2), pages 333-359, June.
    4. Don Bellante & Albert N. Link, 1981. "Are Public Sector Workers More Risk Averse Than Private Sector Workers?," ILR Review, Cornell University, ILR School, vol. 34(3), pages 408-412, April.
    5. Gregory, Robert G. & Borland, Jeff, 1999. "Recent developments in public sector labor markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 53, pages 3573-3630, Elsevier.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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. John Gibson, 2009. "The rising public sector pay premium in the New Zealand labour market," New Zealand Economic Papers, Taylor & Francis Journals, vol. 43(3), pages 255-261.
    3. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhuravleva, Tatiana (Журавлева, Татьяна), 2015. "Analysis of the Factors of Wages Differentiation in the Public and Private Sectors of the Russian Economy [Анализ Факторов Дифференциации Заработной Платы В Государственном И Частном Секторах Эконо," Published Papers mn10, Russian Presidential Academy of National Economy and Public Administration.
    2. Maczulskij, Terhi, 2013. "Employment sector and pay gaps: Genetic and environmental influences," Labour Economics, Elsevier, vol. 23(C), pages 89-96.
    3. repec:eee:labchp:v:3:y:1999:i:pc:p:3573-3630 is not listed on IDEAS
    4. Gabriela Miranda Moriconi & João S. Moura Neto & Nelson Marconi & Paulo Roberto Arvate, 2006. "Evidências Sobre O Comportamento Dos Governos Estaduais Na Determinação Dos Salários Dos Servidores Públicos No Brasil," Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting] 135, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    5. Daniela Peres Cardozo & Marina Silva Cunha, 2019. "Evidence of the Public–Private Wage Gap for Brazil in the Period from 2008 to 2016," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 62(4), pages 577-594, December.
    6. Luechinger, Simon & Stutzer, Alois & Winkelmann, Rainer, 2006. "The Happiness Gains from Sorting and Matching in the Labor Market," IZA Discussion Papers 2019, Institute of Labor Economics (IZA).
    7. Domenico Depalo & Raffaella Giordano, 2011. "The public-private pay gap: a robust quantile approach," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 70(1), pages 25-64, January.
    8. Panizza, Ugo, 1998. "Why Do Lazy People Make More Money?: The Strange Case of the Public Sector Wage Premium," IDB Publications (Working Papers) 1896, Inter-American Development Bank.
    9. Arzu Yavuz, 2011. "Productivity and Wage Differentials between Private and Public Sector in the Developing Countries (Gelismekte Olan �lkelerde �zel ve Kamu Sekt�r�ndeki Verimlilik ve �cret Farklilasmasi)," Working Papers 1103, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
    10. Christian Pfeifer, 2011. "Risk Aversion and Sorting into Public Sector Employment," German Economic Review, Verein für Socialpolitik, vol. 12(1), pages 85-99, February.
    11. Ugo Panizza, 1999. "¿Por qué la gente floja gana más dinero? El extraño caso de la prima salarial del sector público," Research Department Publications 4177, Inter-American Development Bank, Research Department.
    12. Danzer, Natalia, 2019. "Job satisfaction and self-selection into the public or private sector: Evidence from a natural experiment," Labour Economics, Elsevier, vol. 57(C), pages 46-62.
    13. Nuno Crespo & Nádia Simões & José Castro Pinto, 2013. "Determinant factors of job quality in Europe," Working Papers Series 2 13-01, ISCTE-IUL, Business Research Unit (BRU-IUL).
    14. Denis Fougère & Julien Pouget, 2003. "Les déterminants économiques de l'entrée dans la fonction publique," Économie et Statistique, Programme National Persée, vol. 369(1), pages 15-48.
    15. Gorodnichenko, Yuriy & Sabirianova Peter, Klara, 2007. "Public sector pay and corruption: Measuring bribery from micro data," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 963-991, June.
    16. Gregory, Robert G. & Borland, Jeff, 1999. "Recent developments in public sector labor markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 53, pages 3573-3630, Elsevier.
    17. Rhea Molato, 2015. "Public-Private Wage Differentials and the Quality of Government Workers in the Philippines," Working Papers tax-mpg-rps-2015-06, Max Planck Institute for Tax Law and Public Finance.
    18. Morris M. Kleiner & Wenchen Wang, 2023. "The Labor Market Effects of Occupational Licensing in the Public Sector," Staff Report 645, Federal Reserve Bank of Minneapolis.
    19. Molnár, György & Kapitány, Zsuzsa, 2013. "Munkahely a közszférában. Biztonság és hivatás, a szubjektív szempontok szerepe [Public sector employment. Security and social mission- the role of subjective aspects]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(7), pages 781-813.
    20. Heitmueller, Axel, 2004. "Public-Private Sector Wage Differentials in Scotland: An Endogenous Switching Model," IZA Discussion Papers 992, Institute of Labor Economics (IZA).
    21. 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.

    More about this item

    Keywords

    compensating differentials; propensity score matching; public sector;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wai:econwp:07/20. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Geua Boe-Gibson (email available below). General contact details of provider: https://edirc.repec.org/data/dewaknz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.