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.
Showing posts with label lifetime_earnings. Show all posts
Showing posts with label lifetime_earnings. Show all posts
Thursday, 9 August 2012
Thursday, 8 January 2009
Calculating compensation for loss of future earnings: estimating and using work life expectancy
an article by Zoltan Butt, Steven Haberman and Richard Verrall (City University) and Victoria Wass (Cardiff Business School) in Journal of the Royal Statistical Society: Series A (Statistics in Society) Volume 171 Issue 4 (2008)
Abstract
Where personal injury results in displacement and/or continuing disability (or death), damages include an element of compensation for loss of future earnings. This is calculated with reference to the loss of future expected time in gainful employment. We estimate employment risks in the form of reductions to work life expectancies for the UK workforce by using data from the Labour Force Survey with the purpose of improving the accuracy of the calculation of future lifetime earnings. Work life expectancies and reduction factors are modelled within the framework of a multiple-state Markov process, conditional on age, sex, starting employment state, educational attainment and disability.
[Read before The Royal Statistical Society on Wednesday, 16 January 2008, the President, Professor D J Hand, in the Chair]
© 2008 The Royal Statistical Society and Blackwell Publishing Ltd
Abstract
Where personal injury results in displacement and/or continuing disability (or death), damages include an element of compensation for loss of future earnings. This is calculated with reference to the loss of future expected time in gainful employment. We estimate employment risks in the form of reductions to work life expectancies for the UK workforce by using data from the Labour Force Survey with the purpose of improving the accuracy of the calculation of future lifetime earnings. Work life expectancies and reduction factors are modelled within the framework of a multiple-state Markov process, conditional on age, sex, starting employment state, educational attainment and disability.
[Read before The Royal Statistical Society on Wednesday, 16 January 2008, the President, Professor D J Hand, in the Chair]
© 2008 The Royal Statistical Society and Blackwell Publishing Ltd
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