The consequences of an ageing workforce are magnified in the public sector because it generally has an older demographic profile than the private sector (OECD, 2006). The challenge of attracting and retaining capacity within the public service as large numbers of experienced public servants...

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...