Public and Private Sector Pay: a Partly Disaggregated Study

Abstract

The purpose of this article is to give a preliminary econometric analysis of earnings inflation based on the disaggregation of aggregate earnings into four sectors: private manufacturing; private non-manufacturing; public corporations; and central and local government. In the introduction we discuss some of our objectives in analysing wage movements in this way. The second section presents the data. The third section describes the alternative hypotheses to be tested and the research methodology used. The fourth section describes the results of the econometric analysis and in the fifth section we draw tentative conclusions. The data series used are described in more detail in the appendix.