Public-private sector pay differentials in a devolved Scotland

OLS
(no correction)

Univariate probit
correction

Bivariate probit
correction

(1)

Public

(2)

Private

(3)
Public

(4)

Private

(5)

Public

(6)

Private

Constant

1.448

1.5041     .188

1.5671.     218

1.563

(0.159)^***

(0.098) ^*

^** (0.287) ^*

^** (0.198) ^*

^** (0.267) ^***

(0.216) ^***

Age 16-20

-0.500

-0.364

-0.628

-0.458

-0.560

-0.453

(0.119)^***

(0.098) ^*

^** (0.219) ^*

^** (0.134^{) *}

^** (0.202) ^***

(0.122)^***

Age 21-30

-0.201

0.005

-0.269

-0.052

-0.262

-0.047

(0.099) ^**

(0.056)

(0.146) ^*

(0.087)

(0.139) ^*

(0.087)

Married

0.020

0.0900

0.008

0.064

0.003

0.057

(0.051)

(0.053) ^*

(0.055)

(0.058)

(0.055)

(0.061)

Member

0.163

0.001

0.172

0.007

0.171

0.006

of union

(0.065) ^**

(0.050)

(0.066) ^*

^** (0.052)

(0.067) ^***

(0.052)

Professional

0.723

0.779

0.860

0.900

0.840

0.883

(0.197)^***

(0.129) ^*

^** (0.253) ^*

^** (0.181) ^*

^** (0.228) ^***

(0.174)^***

Managerial

0.786

0.530

0.930

0.660

0.922

0.653

(0.151)^***

(0.081) ^*

^** (0.215) ^*

^** (0.135) ^*

^** (0.192) ^***

(0.130)^***

Skilled

0.500

0.250

0.544

0.282

0.538

0.278

non-manual

(0.157)^***

(0.066) ^*

^** (0.178) ^*

^** (0.078) ^*

^** (0.163)^***

(0.075) ^***

Skilled manual

0.243

0.218

0.248

0.235

0.260

0.243

(0.195)

(0.080) ^*

^** (0.218)

(0.093) ^*

^** (0.219)

(0.093) ^***

Higher degree

0.251

0.321

0.244

0.360

0.265

0.389

(0.104) ^**

(0.106) ^*

^** (0.122) ^*

^* (0.144) ^*

^** (0.129) ^**

(0.147)^***

A-level

-0.125

0.110

-0.151

0.090

-0.151

0.088

(0.072) ^*

(0.059) ^*

(0.084) ^*

(0.069)

(0.083) ^**

(0.068)

(N)

O-level

-0.292

-0.005

-0.305

-0.024

-0.311

-0.031

(0.097) ^***

(0.055)

(0.101) ^*

^** (0.062)

(0.105) ^***

(0.062)

Job tenure

0.002

0.007

0.010

0.015

0.007

0.013

(0.012)

(0.012)

(0.015)

(0.013)

(0.014)

(0.013)

Job tenure sq

-0.000

-0.001

-0.000

-0.001

-0.000

-0.001

(0.001)

(0.001)

(0.001)

(0.001)

(0.001)

(0.001)

Small

0.031

-0.194

-0.031

-0.249

-0.024

-0.244

(0.068)

(0.068) ^*

^** (0.094)

(0.090) ^*

^** (0.092)

(0.089)^***

Medium

0.039

-0.049

-0.017

-0.107

-0.020

-0.113

(0.077)

(0.070)

(0.097)

(0.091)

(0.100)

(0.095)

λ_p (Participation)

0.055

0.094

0.058

0.112

(0.102)

(0.138)

(0.126)

(0.155)