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This study introduces vertical pay dispersion, a prevailing equity issue in discussions of organizations and society, to public management research. Bridging tournament and equity theory with the publicness debate, the study analyses the role of publicness dimensions —ownership, funding, and control— for manager-to-worker pay ratios of state-owned enterprises (SOEs). The results show that, for a unique five-year data set, ownership publicness partly affects vertical pay dispersion, and the effects are moderated by city and SOE size. The study enhances the understanding of vertical pay dispersion in the public sector and offers a research agenda regarding the determinants.

public management review

Understanding vertical pay dispersion in the public sector: the role of publicness for manager-to-worker pay ratios and interdisciplinary agenda for future research