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Table 4 The public pay gap during the crisis: determinants of change between 2007 and 2012

From: Understanding the public sector pay gap

  (1) (2) (3) (4) (5) (6)
Dep. variable: change in NACE proxy to government sector wage gap (2012—year of worst CAPB)
\(\Delta _{_{12-\text {min}}}\text {CAPB}_{c}\) −0.0076 −0.0066 −0.0076 −0.0081 −0.0106 −0.0061
  (0.0021) (0.0020) (0.0022) (0.0024) (0.0030) (0.0016)
\(\Delta _{_{12-\text {min}}}\text {\% public employees}_{c}\)   −0.0061     
   (0.0073)     
\(\Delta _{_{12-\text {min}}}\text {\% public administration}\)    0.0010    
employees c    (0.0031)    
\(\Delta _{_{12-\text {min}}}\text {\% value added tradable}\)     0.0090   
sectors c     (0.0107)   
\(\Delta _{_{12-\text {min}}}\text {employment protection}\)      −0.1185  
legislation c      (0.0551)  
\(\Delta _{_{12-\text {min}}}\text {trade union density}_{c}\)       0.0053
       (0.0075)
Constant 0.0097 0.0126 0.0105 0.0050 0.0010 0.0034
  (0.0142) (0.0130) (0.0159) (0.0155) (0.0123) (0.0149)
Observations 23 23 23 22 20 19
Adjusted R-squared 0.16 0.17 0.13 0.18 0.25 0.18
  1. Notes: This table shows the regression of the change in the public sector pay gap on the improvement in the cyclically adjusted primary balance (CAPB) during the crisis. This improvement is computed as the CAPB in 2012 minus the minimum in the period 2007–2011. The change in the public pay gap corresponds to the same time period. Robust standard errors are in parenthesis
  2. Significance levels: 10%; 5%; 1%