This article examines the determination of wagedifferentials in the public and private sectors ofGreece. Also, it considers the effects of incomepolicies on the existing wage differentials for theperiod 197585. The empirical analysis is basedon the hypothesis that wages depend on labourproductivity which is a function of certainmeasurable personal characteristics, such aseducation, experience and skill. The main findingsare that the public sector pays higher wages thanthe private sector. The public sector also offershigher returns with respect to education andexperience, while the private sector compensatesmore skilled workers. Finally, it is shown that thereis a narrowing of existing wage differentials duringthe examined period especially on determinantsexpressing productivityrelated characteristics suchas education, experience and skill.
International Journal of Manpower – Emerald Publishing
Published: Mar 1, 1991
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