Abstract

Abstract The individual pay level is an emotionally discussed subject. Some pay differentials evince significant characteristics which are analysed in scientific literature. There are three significant pay gaps of particular significance to Germany: the gender pay gap between women and men of more than 20 percent, the regional pay gap especially between West and East Germany caused by differences in productivity and the pay gap between the private and public sector. This article investigates a previously unobserved pay gap within the public sector. By analysing a data collection, specific pay differentials in municipal administrations are determined. These differentials exist despite identical labour output in administration services in German municipalities and are caused by specific regional and economic determinants. So, the municipalities of East German Federal States and financially weak West German Federal States evince a pay level of municipal employees below average. Generally, there is a significant pay gap between East and West German municipalities. In addition, this article analyses the structure of the identified pay differences by separating the municipal employees according to their specific pay and qualification categories. As a result, East German municipalities have a smaller number of staff in the higher grade of the civil service and their pay level is below average. This effect is compensated by a higher number of staff in the middle grade of the civil service. The pay level of municipal employees in the middle grade of the civil service does not indicate significant difference among German municipalities. There are similar results in municipalities of financially weak West German Federal States. Despite identical administration services in municipalities, the pay level and pay structure evince interjurisdictional differentials. The results suggest that equal pay for equal work is not even in public service.

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