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The Greek public sector wage premium before the crisis: size, selection and relative valuation of characteristics

Christopoulou, Rebekka and Monastiriotis, Vassilis (2014) The Greek public sector wage premium before the crisis: size, selection and relative valuation of characteristics. British Journal of Industrial Relations, 52 (3). pp. 579-602. ISSN 0007-1080

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Identification Number: 10.1111/bjir.12023


We examine the Greek public–private wage differential before the debt crisis to evaluate the prospective impact of the recent public sector pay cuts. We find a large public premium which persists after controlling for individual and job characteristics. For men, much of this is accounted for by self-selection into the sector that rewards better their characteristics, while for women it is largely driven by sectoral differences in returns. We attribute these effects to more egalitarian pay structures in the public sector and to demand problems in the private sector. The recent policy measures only partially change this situation, as wage deflation extends to the private sector, preserving public premia for the low paid.

Item Type: Article
Official URL:
Additional Information: © 2013 Blackwell Publishing Ltd/London School of Economics and Political Science
Divisions: European Institute
Spatial Economics Research Centre
Hellenic Observatory
Subjects: D History General and Old World > DF Greece
H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HJ Public Finance
J Political Science > JN Political institutions (Europe)
Sets: Departments > European Institute
Research centres and groups > Spatial Economics Research Centre
Research centres and groups > Hellenic Observatory
Date Deposited: 17 Apr 2013 13:42
Last Modified: 20 Jul 2021 01:00
Funders: Hellenic Observatory, LSE

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