The Public Pay Gap in Britain: Small Differences that (Don't?) Matter
利用BHPS数据估计收入和就业动态模型，发现英国公共部门在收入流和未来收入现值上存在正溢价，且收入不平等更低但更持久。
The existing literature on inequality between private and public sectors focuses on cross-section differences in earnings levels. Forward-looking agents, however, care about income and job mobility too, which we show are substantially different between the two sectors. Using data from the BHPS, we estimate a model of income and employment dynamics, allowing for unobserved heterogeneity in the propensity to be employed in either job sector. We detect a positive average public premium both in income flows and in the present discounted sum of future income flows. We also find that income inequality is lower but more persistent in the public sector. Copyright 2007 The Author(s). Journal compilation Royal Economic Society 2007.