Please use this identifier to cite or link to this item: http://hdl.handle.net/1893/10150
Appears in Collections:Economics Journal Articles
Peer Review Status: Refereed
Title: The pattern and evolution of geographical wage differentials in the public and private sectors in Great Britain
Authors: Bell, David
Elliott, Robert F
Ma, Ada
Scott, Anthony
Roberts, J Elizabeth
Contact Email: d.n.f.bell@stir.ac.uk
Issue Date: Jul-2007
Publisher: Blackwell Publishing for the University of Manchester
Citation: Bell D, Elliott RF, Ma A, Scott A & Roberts JE (2007) The pattern and evolution of geographical wage differentials in the public and private sectors in Great Britain, Manchester School, 75 (4), pp. 386-421.
Abstract: Government policy on the nature of wage bargaining in the public sector can have important implications for the provision of public services. Using the New Earnings Survey, the Labour Force Survey and the British Household Panel Survey, we examine the size and evolution of public-private sector wage differentials across geographical areas within the UK and over time. Public sector bargaining structures have led to historically high wage premia, although these premia are declining over time. In high-cost low-amenity areas, such as the south-east of England, the public sector underpays relative to the private sector, therefore creating problems in recruitment to and provision of public services. Public sector labour markets are around 40 per cent as responsive to area differences in amenities and costs as are private sector labour markets. Differences in the degree of spatial variation between sectors are likely to remain, leading to persistent problems for the delivery of public services in some parts of the UK. Reform of public sector pay structures is likely to be costly, and so other non-pay policies need to be considered to increase the attractiveness of public sector jobs.
Type: Journal Article
URI: http://hdl.handle.net/1893/10150
DOI Link: http://dx.doi.org/10.1111/j.1467-9957.2007.01023.x
Rights: The publisher does not allow this work to be made publicly available in this Repository. Please use the Request a Copy feature at the foot of the Repository record to request a copy directly from the author. You can only request a copy if you wish to use this work for your own research or private study.
Notes: This research was funded by grant L219252123 from the Economic and Social Research Council.
Affiliation: Economics
University of Aberdeen
University of Aberdeen
University of Melbourne
Economics

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