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Table 2 Determinants of the public sector pay gap: government monopolistic power

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 −0.0103 −0.0110 −0.0073   −0.0142 −0.0076
  (0.0041) (0.0041) (0.0038)   (0.0032) (0.0039)
% public administration 0.0070 0.0075 0.0083 0.0113   0.0080
employees (0.0028) (0.0022) (0.0028) (0.0024)   (0.0027)
Government effectiveness −0.0197      
  (0.0383)      
% value added tradable sectors −0.0091 −0.0087   −0.0059 −0.0093  
  (0.0035) (0.0031)   (0.0037) (0.0033)  
% public employees (over population)     −0.0195   
     (0.0077)   
% compensation of employees in collective goods      0.0044  
      (0.0020)  
Openness       −0.0002
       (0.0005)
Constant 0.3393 0.3130 0.0253 0.0045 0.4718 0.0552
  (0.2308) (0.2006) (0.1615) (0.1568) (0.1589) (0.1843)
Observations 24 24 25 24 24 24
Adjusted R-squared 0.59 0.60 0.49 0.56 0.54 0.49
  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 regression in column (6) excludes Luxembourg, as its openness is an outlier with respect to the sample (larger than the mean plus 5 standard deviations). Robust standard errors are in parenthesis
  2. Significance levels: 10%; 5%; 1%