Skip to main content

Table 11 Determinants of the public administration pay gap

From: Understanding the public sector pay gap

  (1) (2) (3) (4) (5) (6)
Dep. variable: public administration (industry O) wage gap (2004–2012)
% Public administration −0.0184   −0.0130   −0.0190   −0.0208   −0.0140   −0.0198  
employees (over total employees) (0.0103)   (0.0135)   (0.0100)   (0.0085)   (0.0108)   (0.0088)  
% Public administration 0.0086   0.0056   0.0085   0.0074   0.0084   0.0089  
employees (over public employees) (0.0032)   (0.0050)   (0.0030)   (0.0023)   (0.0022)   (0.0022)  
% Value added tradable −0.0046   −0.0041   −0.0047   −0.0051   −0.0044   −0.0045  
sectors (0.0030)   (0.0037)   (0.0026)   (0.0021)   (0.0020)   (0.0023)  
Employment protection 0.0018            
legislation (0.0373)            
Trade union density    −0.0010          
Debt          −0.0007    
          (0.0004)    
Real GDP growth            0.0032  
            (0.0081)  
Constant 0.0818   0.1589   0.1761   0.1534   0.0918   0.0881  
  (0.0880)   (0.0858)   (0.3863)   (0.0546)   (0.0715)   (0.0676)  
Observations 22   21   24   23   24   24  
Adjusted R-squared 0.22   0.24   0.35   0.37   0.41   0.35  
  1. Notes: This table shows the correlation between the Public Administration 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 a table analogous to Table 9, but the wage gap is that of the Public Administration (industry O) vs. the rest of the economy, whereas in Table 9, it is that of the NACE proxy to the government sector (industries O, P, and Q) vs. the rest of the economy. The presence of the private sector is negligible in industry O, whereas it can have a large presence in industries P and Q, depending on the country. Robust standard errors are in parenthesis
  2. Significance levels: 10%; 5%; 1%