an article (CEPCP377) by Alexander Danzer and Peter Dolton published in CentrePiece - The Magazine for Economic Performance (Autumn 2012)
The UK’s coalition government has suggested that both pay and pensions in the public sector are too high relative to the private sector. Alexander Danzer and Peter Dolton use
the concept of ‘total reward’ to evaluate this claim, comparing the lifetime compensation
available to highly educated men working in the two sectors.
Full article (PDF 4pp delightfully illustrated with hares and tortoises)
This article summarises Total Reward and Pensions in the UK in the Public and Private Sectors by Alexander Danzer and Peter Dolton, Labour Economics 19(4): 584-594, August 2012 [about which I blogged in August here]
Showing posts with label Total_Reward. Show all posts
Showing posts with label Total_Reward. Show all posts
Thursday, 27 September 2012
Thursday, 9 August 2012
Total Reward and pensions in the UK in the public and private sectors
an article by Alexander M. Danzer (University of Munich (LMU), CESifo & IZA Bonn, Germany) and Peter J. Dolton (University of Sussex & Centre for Economic Performance, London School of Economics, UK) published in Labour Economics Volume 19 Issue 4 (August 2012)
Abstract
Recent controversy has surrounded the relative value of public and private sector remuneration. We propose a comprehensive measure of Total Reward (TR) which includes not just pay, but pensions and other ‘benefits in kind’, evaluate it as the present value of the sum of all these payments over the lifetime and compare it for the highly educated in the UK public and private sectors.
Our results suggest that TR is broadly equalised over the lifecycle for highly educated men while highly educated women have a clear TR advantage in the public sector by the end of their career.
We suggest that the current controversy over public–private sector pension differentials and the perennial issues of public/private sector pay gaps requires a lifetime perspective and that the concept of TR is appropriate.
Highlights
► We define the most comprehensive measure of total job remuneration, Total Reward.
► We estimate Total Reward differences between public and private sector in the UK.
► Our approach takes a novel life-cycle perspective.
► Men would optimally switch sector while women are better off in the public sector.
► We find that sector switching behaviour follows the actual Total Reward incentives.
Abstract
Recent controversy has surrounded the relative value of public and private sector remuneration. We propose a comprehensive measure of Total Reward (TR) which includes not just pay, but pensions and other ‘benefits in kind’, evaluate it as the present value of the sum of all these payments over the lifetime and compare it for the highly educated in the UK public and private sectors.
Our results suggest that TR is broadly equalised over the lifecycle for highly educated men while highly educated women have a clear TR advantage in the public sector by the end of their career.
We suggest that the current controversy over public–private sector pension differentials and the perennial issues of public/private sector pay gaps requires a lifetime perspective and that the concept of TR is appropriate.
Highlights
► We define the most comprehensive measure of total job remuneration, Total Reward.
► We estimate Total Reward differences between public and private sector in the UK.
► Our approach takes a novel life-cycle perspective.
► Men would optimally switch sector while women are better off in the public sector.
► We find that sector switching behaviour follows the actual Total Reward incentives.
Subscribe to:
Posts (Atom)
