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Table 10 Determinants of the public sector pay gap: sample 2004–2007

From: Understanding the public sector pay gap

 

(1)

(2)

(3)

(4)

(5)

(6)

Dep. variable: NACE proxy to government sector wage gap (2004–2007)

% Public employees

−0.0118

 

−0.0086

 

−0.0111

 

−0.0110

 

−0.0107

 

−0.0112

 
 

(0.0036)

 

(0.0040)

 

(0.0036)

 

(0.0030)

 

(0.0037)

 

(0.0031)

 

% Public administration

0.0056

 

0.0069

 

0.0080

 

0.0060

 

0.0080

 

0.0078

 

employees

(0.0022)

 

(0.0025)

 

(0.0022)

 

(0.0025)

 

(0.0025)

 

(0.0020)

 

% Value added tradable

−0.0058

 

−0.0070

 

−0.0061

 

−0.0076

 

−0.0065

 

−0.0063

 

sectors

(0.0028)

 

(0.0032)

 

(0.0030)

 

(0.0028)

 

(0.0025)

 

(0.0024)

 

Employment protection

0.0268

           

legislation

(0.0421)

           

Trade union density

  

−0.0011

         
   

(0.0012)

         

Log per capita GDP

    

0.0076

       
     

(0.0453)

       

Deficit

      

0.0031

     
       

(0.0040)

     

Debt

        

0.0000

   
         

(0.0006)

   

Real GDP growth change

          

−0.0026

 
           

(0.0072)

 

Constant

0.2748

 

0.2618

 

0.1751

 

0.3510

 

0.2478

 

0.2777

 
 

(0.2025)

 

(0.1524)

 

(0.4858)

 

(0.1663)

 

(0.1729)

 

(0.1516)

 

Observations

17

 

20

 

24

 

23

 

24

 

24

 

Adjusted R-squared

0.60

 

0.62

 

0.64

 

0.65

 

0.64

 

0.64

 
  1. Notes: This table shows the correlation between the public sector pay gap and country characteristics linked to the government monopolistic power in the provision of public services, the labor market institutions, and the business cycle. This is the analog of Table 9 but for the sample 2004–2007 (excluding the crisis years). Robust standard errors are in parenthesis
  2. Significance levels: 10%; 5%; 1%