The need for more differentiated pay setting in the public sector is probably the most important driver behind decentralisation. Both the labour market and the public activities have become less homogeneous, and public administrations need – just like any other employer – to develop pay-setting arrangements that are sufficiently flexible to enable an adaptation of pay systems and pay structures.
Governance of Decentralised Pay Setting in Selected OECD Countries
OECD Working Papers on Public Governance
