A report on wage differentials between the municipal sector and the private sector in 2019

Other Publications Eetu Isotalo, Antti Kauhanen, Terhi Maczulskij

Introduction

The municipal sector agreed in the previous round of negotiations to launch a statistical study on wages and labour costs in the municipal sector. The purpose of this study is to examine wage differentials between the municipal sector and the private sector in Finland. A monitoring group consisting of the municipal sector’s statistical committee has been responsible for preparing the project plan. Based on the results of this study, conclusions can be drawn regarding wage differentials, while taking into account the future outlook of municipal finances and other conditions affecting municipal employers. When drawing conclusions, other statistical and independent studies on the topic may also be considered.

At the initial stage of the project, a statement was prepared on the statistical methods, variables used in the analyses, and the content of previous studies conducted for the municipal sector. The statement was prepared in cooperation between the Labour Institute for Economic Research (LABORE) and the Research Institute of the Finnish Economy (ETLA). Based on the observations in the statement and discussions with the statistical group, a new and third study on wage differentials between the municipal sector and the private sector was produced.

The structure of the study is as follows. Chapter 2 presents the background of the study, including a description of the data and definitions of earnings concepts. Chapter 3 provides a descriptive analysis of average wage differentials between the municipal and private sectors. Chapter 4 presents the statistical methods used in the study, and Chapter 5 reports the results of the econometric models. The analyses are conducted separately for supervisors and all occupations, as well as across demographic groups such as gender, age, and education level. Finally, Chapter 5 provides a summary of the study’s findings. (AI translation)

Publication Information

Kauhanen, A., Maczulskij, T. & Isotalo, E. (2020), Kunta-alan ja yksityisen sektorin välinen palkkaeroselvitys 2019, Kuntatyönantajat.

Other Publications Reports
Income and employment of platform workers in Finland: A study linking survey and register data
Merja Kauhanen, Susanna Sten-Gahmberg, Aart-Jan Riekhoff Income and employment of platform workers in Finland: A study linking survey and register data
Read more
Other Publications
Henkilökohtainen ohjaus puree, pelkkä kirje ei – hakeva toiminta lisää matalasti koulutettujen osallistumista aikuiskoulutukseen
Hannu Karhunen, Jani Kuhakoski, Tuomo Suhonen, Antti Kauhanen, Krista Riukula, Pekka Vanhala, Hanna Virtanen Personal guidance works, a letter alone does not – outreach increases participation in adult education among the low-educated
Read more
Other Publications Reports
Kannustaako koulutustiedon jakaminen kouluttautumaan? Kirjepostikokeilun ja hakevan toiminnan pilotin loppuraportti
Hannu Karhunen, Jani Kuhakoski, Tuomo Suhonen, Antti Kauhanen, Krista Riukula, Pekka Vanhala, Hanna Virtanen Does Information Sharing Encourage Participation in Education? Final Report on the Letter Mail Experiment and the Outreach Pilot
Read more