The public–private sector gender wage differential in Britain: evidence from matched employee-workplace data

Abstract

This article shows that little of the gender earnings gap in the public and private sectors in Britain are explained by differences in employee characteristics. The differences in workplace characteristics, however, make a significant, sizeable contribution. It is shown that performance related pay and company pension schemes are associated with higher relative earnings in the private sector, whilst increased provision of family-friendly employment practices in the public sector is associated with higher relative earnings for women.