Public-private sector pay differentials in a devolved Scotland



Table 5. Pay gap between public and private sector: Bivariate probit model

Males

Females

β* = βpri

β* = βpub

β* = βpri

β* = βpub

Predicted log wages

ln Wpub = 2.2400

ln Wprri = 2.0258

ln Wpub = 2.1518

ln Wprri = 1.7365

ln w pub - ln wpri

0.2142 **

0.4152 **

0.2913 **

0.4194 **

0.2686 **

0.4629 **

(Xpub - Xpri)β

(136.0 %)

(196.0 %)

(65.0 %)

(112.0 %)

-1.033 **

-0.2501

Xpri ( β - βpr )

-

(-482.0 %)

-

(-60.0 %)

Xpub (β pub - β*)

-0.9103 **

(-424.0 %)

-

-0.0559

(-13.0 %)

-

Selection (due to differences

0.8332 **

0.2025

in the selection terms)

(388.0 %)

(48.0 %)

Selection choice

0.7740 **

0.2466 ** (BC)

Participation

0.0599

-0.0441

Selectivity corrected wage gap

-0.6189 ** (BC)

0.2127

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).


Public-PRIVATE Pay Differentials                  315




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