We uncover the short- and long-run structural determinants of the existing cross-country heterogeneity in public-private pay differentials for a broad set of OECD countries. We explore micro data (EU-SILC, 2004–2012) and macro data (1970–2014). Three results stand out. First, when looking at pay gaps based on individual data, more than half of the cross-sectional variation of the sample can be accounted for by the degree of exposure to international competition, as well as by the size of the public sector labor force and its composition (i.e., the intensity in the provision of pure public goods), while labor market institutions play a very limited role. Second, we find that in some countries, pay gaps have narrowed down significantly during the recent financial crisis, this decrease being explained by the widespread process of fiscal consolidation rather than by changes in the previous factors. Third, we show that in the log run, openness to international trade and improvements in the institutional quality of governments are associated with decreases in the public-private wage gap. Our findings can be rationalized by a body of research stressing noncompetitive wage settlements in the public sector.

中文翻译：

---

了解公共部门的薪酬差距

我们发现了广泛的经合组织国家在公共和私营部门薪资差异中现有的跨国异质性的短期和长期结构决定因素。我们探索微观数据（EU-SILC，2004–2012）和宏观数据（1970–2014）。三个结果脱颖而出。首先，当根据个人数据查看薪酬差距时，样本的横截面变化的一半以上可以通过国际竞争的程度，公共部门劳动力的规模和它的组成（即提供纯公共产品的强度），而劳动力市场机构的作用则非常有限。其次，我们发现在某些国家/地区，在最近的金融危机期间，薪酬差距已大大缩小，减少的原因是广泛的财政整顿过程，而不是先前因素的变化。第三，我们表明，在对数运行中，对国际贸易的开放和政府机构质量的提高与公私工资差距的减少有关。可以通过强调公共部门中非竞争性工资结算的一系列研究来使我们的发现合理化。