Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/33179 
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dc.contributor.authorPostel-Vinay, Fabienen
dc.contributor.authorTuron, Hélèneen
dc.date.accessioned2005-09-05-
dc.date.accessioned2010-07-07T09:07:45Z-
dc.date.available2010-07-07T09:07:45Z-
dc.date.issued2005-
dc.identifier.urihttp://hdl.handle.net/10419/33179-
dc.description.abstractThe existing literature on inequality between private and public sectors focuses on cross-section differences in earnings levels. A more general way of looking at inequality between sectors is to recognize that forward-looking agents will care about income and job mobility too. We show that these are substantially different between the two sectors. Using data from the BHPS, we estimate a model of income and employment dynamics over seven years. We allow for unobserved heterogeneity in the propensity to be unemployed or employed in either job sector and in terms of the income process. We then combine the results into lifetime values of jobs in either sector and carry out a cross-section comparative analysis of these values. We have four main findings. First focusing on cross-sector differences in terms of the income process only, we detect a positive average public premium both in income flows and in the present discounted sum of future income flows. Second, most of the observed relative income compression in the public sector is due to a lower variance of the transitory component of income. Third, when taking job mobility into account, the lifetime public premium is essentially zero for workers that we categorize as high-employability individuals, suggesting that the UK labor market is sufficiently mobile to ensure a rapid allocation of workers into their natural sector. Fourth, we find some evidence of job queuing for public sector jobs among low-employability workers.en
dc.language.isoengen
dc.publisher|aInstitute for the Study of Labor (IZA) |cBonnen
dc.relation.ispartofseries|aIZA Discussion Papers |x1637en
dc.subject.jelJ45en
dc.subject.jelJ31en
dc.subject.jelJ62en
dc.subject.ddc330en
dc.subject.keywordincome dynamicsen
dc.subject.keywordjob mobilityen
dc.subject.keywordpublic-private inequalityen
dc.subject.keywordselection effectsen
dc.subject.stwVergütungssystemen
dc.subject.stwBesoldungen
dc.subject.stwÖffentlicher Diensten
dc.subject.stwÖffentlicher Sektoren
dc.subject.stwVergleichen
dc.subject.stwPrivatwirtschaften
dc.subject.stwSchätzungen
dc.subject.stwGroßbritannienen
dc.titleThe public pay gap in Britain: small differences that (don't?) matter-
dc.type|aWorking Paperen
dc.identifier.ppn493411399en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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