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 …

We examine the interactions between public and private sector wages per employee in OECD countries. The growth of … public sector wages and of public sector employment positively affects the growth of private sector wages. Moreover, total … private sector wages. We then set up a dynamic labour market equilibrium model with two sectors, search and matching frictions …

significant and positive when only monetary wages are taken into account. However, when in-kind payments and bonuses are included …