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Table 5 Long-run determinants of the public pay gap

From: Understanding the public sector pay gap

  (1) (2) (3) (4) (5) (6)
Dep. variable: Δgeneral government sector “macro” wage gap ct
Δ% public employees ct −0.0178 −0.0087 −0.0180 −0.0340 −0.0131 −0.0336
  (0.0068) (0.0183) (0.0089) (0.0162) (0.0112) (0.0176)
ΔOpenness ct −0.0016 −0.0021 −0.0016 −0.0020 −0.0005 −0.0019
  (0.0007) (0.0010) (0.0008) (0.0006) (0.0015) (0.0007)
Δ% public administration   1.4048     
employees ct   (1.3675)     
ΔQuality of government ct    −0.2457    
    (0.1320)    
ΔGovernment effectiveness ct     −0.1631   
     (0.0630)   
ΔEmployment protection      0.0699  
legislation ct      (0.1028)  
ΔTrade union density ct       −0.0023
       (0.0059)
5-year dummies Yes Yes Yes Yes Yes Yes
Time period 1975–2014 1980–2014 1985–2014 2000–2014 1990–2014 2000–2014
Observations 146 56 110 57 91 57
Adjusted R-squared 0.28 0.13 0.21 0.36 0.17 0.28
  1. Notes: This table shows the regression of 5-year changes in the macro wage gap on 5-year changes of country characteristics linked to the government monopolistic power in the provision of public services and labor market institutions (long-run determinants of the public pay gap, Eq. (2)). Robust standard errors are in parenthesis
  2. Significance levels: 10%; 5%; 1%