The project aims to analyze wage inequality in the government sector (part of the public sector) and to identify the contributions from (a) differences in firm-specific wage-premia and (b) wage differences among colleagues within a firm.
This project aims to analyze wage inequality in the government sector (part of the public sector) and to contribute to a better understanding of determinants of wage inequality, as well as their role over time. The two main sources of wage inequality, identified in the literature, are differences in firm-specific wage premia and wage differences between colleagues within the firm. Previous research indicates that each of these two sources accounts for roughly half of the wage inequality in OECD countries. The goal of this project is to decompose wage inequality in the government sector into a between-firm contributor and a within-firm contributor in order to examine (a) how these two components have evolved over time, and (b) whether changes in these components over time are related to changes in wage determination in the sector.