Skip to main content

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

From: Understanding the public sector pay gap

  (1) (2) (3) (4) (5) (6)
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
  1. Notes: This table shows the regression of the public sector pay gap on country characteristics linked to the government monopolistic power in the provision of public services, the labor market institutions, and the business cycle. Robust standard errors are in parenthesis
  2. Significance levels: 10%; 5%; 1%