We estimate the probability of public sector leadership { de ned as Granger causality from public to private sector wages { in a pool of 18 OECD countries as a function of countries' in- stitutional features. We nd that public-private sector causality results are quite heterogeneous across countries. So, we investigate whether this is related to di erences in labor and product market institutions, and notably wage-setting institutions, across countries. Government in- volvement in collective bargaining, bargaining centralization and collective bargaining systems with predominant regional levels' systems are positively correlated with the probability of nd- ing public wage leadership. Among the factors that reduce its probability we can underline the impact of globalization and a level of collective bargaining closer to the company one
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