Fig. 1

Public-private pay differentials computed from macro data and comparison with micro-based pay gaps. Notes: Panels a and b show the evolution of public-private pay differentials (computed from macro data) for a selection of countries. Panel c compares the public sector pay gap conditional on observed worker characteristics (EU-SILC, see Eq. 1) with the wage gap computed from aggregate macro data (National Accounts). Panel d compares the latter with the public sector pay gap computed from micro data (EU-SILC) unconditional on observed characteristics. With the exception of Luxembourg, the cross-country patterns of micro vs. macro pay gaps are similar