The study looked at how public sector wages and employment affect private sector wages in OECD countries. They used a model to analyze the impact of public sector wages and employment on the labor market. The results showed that when public sector wages and employment increase, private sector wages also go up. Other factors like productivity, unemployment rate, hours worked, and inflation also play a role in determining private sector wage growth. Public sector wage growth is influenced by fiscal conditions as well as market-related variables.