Wage Policy in the Public Sector and Income Distribution

Sheshinski, Eytan (1982): Wage Policy in the Public Sector and Income Distribution. Published in:

Abstract

This paper examines the direct and indirect e�ects of a government's wage policy in the public sector on the overall income distribution in the economy. By direct e�ects we mean the wage di�erentials in the public sector. Indirect e�ects refer to the secondary e�ects of the government's policy through changes in the occupational structure. This analysis is based on a simple model suggested by Tinbergen (1951) and Roy (1951), followed by Houthakker (1976). In the numerical calculations, the model yields realistic conclusions which underline the importance of government wage policy.

• Item Type: MPRA Paper
• Language: English
• Keywords: income distribution, wage policy, public and private sector, Lorentz curve
• Subjects: H - Public Economics > H0 - General

References

Hanoch, G. 1963. Income di�erentials in Israel. The Falk Institute.

Houthakker, H. 1974. The size distribution of labour incomes derived from the distribution of aptitudes. In Econometrics and economic theory, ed. Sell- ekaerts.

Levy, H. 1975. Lifetime income patterns in di�erent occupations in Israel. Bank of Israel.

Lydall, H. F. 1968. The structure of earnings. Oxford.

Roy, A. D. 1951. Some thoughts on the distribution of earnings. Oxford Economic Papers, 135- 146.

Smith, S. P. 1976. Equal pay in the public sector. Princeton.

Tinbergen, J. 1951. Some remarks on the distribution of labour incomes. International economic Papers, 195-207.