Public-private sector pay differentials in a devolved Scotland



Table 4. Pay gap between public and private sector: Simple probit model.

β* = βpri

Males

β* = βpub

β* = βpri

Females

β* = βpub

Predicted log wages          ln

Wpub = 2.2392

ln Wpriv = 2.0263

ln Wpub = 2.1516

ln Wpr,iv = 1.7369

ln wpub - ln wpri

0.2128 **

0.4147 **

(Xpub - Xpri )β*

0.2950 **

0.4198 **

0.2763 **

0.4732 **

(139.0 %)

(197.0 %)

(67.0 %)

(114.0 %)

Xpri ( β - βpn )

-

-0.9866 **

-

-0.2906

(-463.0 %)

-

(-70.0 %)

χPub (βPub - β*~)

-0.8619 **

-

-0.0936

(-405.0 %)

-

(-23.0 %)

-

Selection (due to differences in

0.7797 **

0.2321

the selection terms)

(366.0 %)

(56.0 %)

Sector choice

0.7389 **

0.2633 ** (BC)

Participation

-0.0408

-0.0312

Selectivity corrected wage gap

-0.5668

0.1826

Note: Cross-section weights applied. *,**, and *** denote significance at 10%, 5% and 1% respectively. Standard errors in parentheses, where OLS standard
errors are robust and the s.e. for the remaining models are bootstrapped. (N) refers to normal, (P) to percentile, and (BC) to bias corrected confidence
intervals (1000 replications).


314                  Journal of Applied Economics




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