Does it pay to go public? Understanding the public-private sector wage gap in Germany

Arbeitspapier

Using data from the German Socio-Economic Panel 1984-2017, this paper provides first evidence on the public-private sector wage gap in Germany based on a fixed effect quantile approach. The results reveal substantial differences in the decomposition of the gap compared to the standard cross-sectional approach. We find that women earn more in public employment, while men are penalized. Our analysis suggests that this penalization is not related to compensating wage differentials. Against the background of demographic change, the public sector may face difficulties to recruit (skilled) men and may need to adjust its pay schemes to fair and merit-based ones.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Diskussionspapiere ; No. 116

Classification and Topics

• Classification: Wirtschaft ; Wage Level and Structure; Wage Differentials ; Public Sector Labor Markets ; Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models
• Subject: Public-Private Sector Wage Gap ; Quantile Regression for Panel Data ; Germany

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bonaccolto-Töpfer, Marina ; Castagnetti, Carolina ; Prümer, Stephanie
• Event: Veröffentlichung
• (who): Friedrich-Alexander-Universität Erlangen-Nürnberg, Lehrstuhl für Arbeitsmarkt- und Regionalpolitik
• (where): Nürnberg
• (when): 2021

Further information

• Handle: http://hdl.handle.net/10419/232551
• Last update: 10.03.2025, 11:43 AM CET