Social Sciences
5 years ago

Public Sector Wages Align with Private Sector, Impacting Workforce Equity

RePEc: Research Papers in Economics
The development of wages in the public sector and their connection with wages in the private sector
Yuval Mazar

Paper Summary

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The wages in the public sector and private sector have been connected since 1999, with short-term connections becoming stronger. Public sector wages have influenced private sector wages, with wage agreements in the public sector tracking private sector trends. Wage agreements in the public sector have contributed to about one-third of total wage growth in the public sector since 1999. Overall, public sector wages have increased less than private sector wages since the 1990s.