Assessing the wage gap between public and private sector employees in Ireland: issues, evidence and challenges

Author:

Flannery Darragh1,Turner Tom1

Affiliation:

1. University of Limerick , Limerick , Ireland

Abstract

Abstract Over recent years pay levels in the public sector of the economy have come under increasing scrutiny. This paper provides an assessment of the key issues and challenges central to a comparison of wage levels in the private and public sector in Ireland. A review of the extant studies that have employed multivariate analysis to estimate the gap between public and private sector wages in Ireland indicates a wage premium in favour of public sector workers. However the actual magnitude of the earnings gap is difficult to accurately assess as the size of the premium varies markedly across these various studies. A number of possible options are suggested to guide the development of a fair system for assessing wage levels in the public sector.

Publisher

Walter de Gruyter GmbH

Reference38 articles.

1. Bach, S. and Stroleny, A. (2013). ‘Public service employment restructuring in the crisis in the UK and Ireland: Social partnership in retreat’. European Journal of Industrial Relations 19: 4, 341-357.

2. Becker, G. (1976). Human Capital New York: National Bureau of Economic Research.

3. Belman, D. and Heywood, J. (1996). ‘The structure of compensation in the public sector’, in D. Belman, G. Morley and D. Hyatt (eds), Public Sector Employment Madison, WI: Industrial Relations Research Association, pp.127-162.

4. Belman, D. and Heywood, J. (2004). ‘Public-sector wage comparability: The role of earnings dispersion’. Public Finance Review 32: 6.

5. Bender, K. (2003). ‘Examining equality between public-and private-sector wage distributions’. Economic Inquiry 41: 1, 62-79.

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