Government wage differentials

This paper shows that public sector wages usually exceed private but the size and composition of the differentials depend on sex and level of government. Using a technique derived from the literature on sex discrimination, these differentials are decomposed into a portion attributable to differences...

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Bibliographic Details
Published in:Journal of urban economics 1977-07, Vol.4 (3), p.248-271
Main Author: Smith, Sharon P.
Format: Article
Language:English
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Summary:This paper shows that public sector wages usually exceed private but the size and composition of the differentials depend on sex and level of government. Using a technique derived from the literature on sex discrimination, these differentials are decomposed into a portion attributable to differences in productivity between the two types of workers and a portion ascribed to economic rent. This rent results from public workers' relatively greater political influence in the government wage-setting process and a systematic upward bias in public wages imparted by present government pay policy.
ISSN:0094-1190
1095-9068
DOI:10.1016/0094-1190(77)90011-0