Regional pay? The public/private sector pay differential

Regional pay? The public/private sector pay differential. Regional Studies. This paper extends the debate on making public sector wages more responsive to those in the private sector. The way in which the public/private sector wage differential is calculated dramatically alters conclusions, and far from there being substantial regional disparity in wages offered to public sector workers, any differences are predominantly concentrated in London and the South East where public sector workers are significantly disadvantaged relative to private sector workers. This has implications for staff recruitment and retention. Such findings question the need for regional market-facing pay, but highlight the necessity to revisit the London-weighting offered to public sector workers.