We estimate the changing value of workplace pensions in the UK and incorporate their value into an estimate of the public sector pay differential. Falling pension membership in the private sector and growing value of public service pensions led to a significant increase in the estimated public sector pay differential from 1997 to 2009, even though headline pay grew faster in the private sector. From 2009 to 2012, although pay grew faster in the public sector, reforms to public service defined benefit pensions, particularly indexation to the CPI rather than RPI, significantly reduced the public pay differential.
Authors
Deputy Director
Carl, a Deputy Director, is an editor of the IFS Green Budget, is expert on the UK pension system and sits on the Social Security Advisory Committee.
Associate Director
Jonathan is an Associate Director and Head of Retirement, Savings and Ageing sector, focusing on pensions, savings and later-life economic activity.
Journal article details
- DOI
- 10.1177/002795011623700114
- Publisher
- Sage
- JEL
- J32, J38
- Issue
- Volume 237, Issue 1, August 2016, pages R30-R37
Suggested citation
Cribb, J and Emmerson, C. (2016). 'Workplace pensions and remuneration in the public and private sectors in the UK' 237, Issue 1(2016), pp.R30–R37.
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