Research and analysis

The dynamics of public and private sector wages, pay settlements and employment

This research from NIESR looks at dynamics of public and private sector wages in the UK, with a focus on how pay review body recommendations may affect the wider economy.

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This research commissioned by the OME from NIESR looks at dynamics of public and private sector wages in the UK. It finds some evidence of a long-run relationship between public and private sector wages, with the public sector adopting the role of ‘wage follower’. In the short run, there were statistically significant evidence of wage spillovers running from the public to the private sector.

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Published 3 March 2020

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