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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%