This paper looks at public and private sector wages interactions since the 1960s in the euro area, euro area countries … public and private sector wages over the business cycle; this finding is robust across methods and measures of wages and … quite general across countries. Second, we show evidence of long-run relationships between public and private sector wages …

We analyse the interactions between public and private sector wages per employee in OECD countries. We motivate the … sector employment and wages on the labour market, particularly on private sector wages. Our empirical evidence shows that the … growth of public sector wages and of public sector employment positively affects the growth of private sector wages. Moreover …

labor market. Previous studies that analyze the labor market effects of public sector employment and wages have mostly … assumed exogenous rules for public wage and public employment. We show that theories that equalize wages with marginal … products in the private sector can rationalize the interaction of public and private sector wages when extended to accommodate …

and firm composition (decomposition), as well as various potential biases (corrections for underreported wages and …

wage regressions suggest that the quality of entrants, measured with their residual wages achieved in the private sector …

percent. Since then both skill premia have increased by around 10 percentage points in 2002. Theories that equalize wages with …