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Journal Article

The public pay gap in Britain: small differences that (don't?) matter

Authors

Publication date

2007

Abstract

The existing literature on inequality between private and public sectors focuses on cross-section differences in earnings levels. Forward-looking agents, however, care about income and job mobility too, which we show are substantially different between the two sectors. Using data from the BHPS, we estimate a model of income and employment dynamics, allowing for unobserved heterogeneity in the propensity to be employed in either job sector. We detect a positive average public premium both in income flows and in the present discounted sum of future income flows. We also find that income inequality is lower but more persistent in the public sector.

Published in

Economic Journal

Volume

117 (523):1460-1503

DOI

http://dx.doi.org/10.1111/j.1468-0297.2007.02091.x

Subjects

Labour Market, Income Dynamics, and Wages And Earnings

Links

http://serlib0.essex.ac.uk/search?/seconomic+journal/seconomic+journal/1%2C2%2C3%2CB/exact&FF=seconomic+journal&1%2C2%2C/indexsort=-

Notes

Albert Sloman Library Periodicals *restricted to Univ. Essex registered users*

#510142


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