Table 9 Determinants of the public sector pay gap: government monopolistic power and wage-setting institutions

Dep. variable: NACE proxy to government sector wage gap (2004–2012)

% Public employees

−0.0092^∗∗

−0.0091

−0.0121^∗∗

−0.0110^∗∗∗

−0.0113^∗∗

−0.0110^∗∗

(0.0041)

(0.0056)

(0.0043)

(0.0036)

(0.0049)

(0.0041)

% Public administration

0.0071 ^∗∗

0.0065 ^∗∗

0.0078 ^∗∗∗

0.0045 ^∗

0.0072 ^∗∗

0.0073 ^∗∗∗

employees

(0.0025)

(0.0029)

(0.0024)

(0.0026)

(0.0028)

(0.0021)

% Value added tradable

−0.0078^∗∗

−0.0083^∗

−0.0075^∗

−0.0099^∗∗∗

−0.0087^∗∗

−0.0082^∗∗

sectors

(0.0037)

(0.0040)

(0.0038)

(0.0033)

(0.0032)

(0.0033)

Employment protection

0.0298

legislation

(0.0540)

Trade union density

−0.0008

(0.0014)

Log per capita GDP

0.0265

(0.0419)

Deficit

0.0081 ^∗

(0.0044)

Debt

0.0001

(0.0005)

Real GDP growth

−0.0081

(0.0113)

Constant

0.1738

0.3063

0.0482

0.4225 ^∗∗

0.3232

0.3244

(0.2051)

(0.2130)

(0.5080)

(0.1850)

(0.2225)

(0.1928)

Observations

22

21

24

23

24

24

Adjusted R-squared

0.48

0.49

0.59

0.62

0.58

0.59