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Page last updated at 08:34 GMT, Monday, 4 July 2011 09:34 UK

Pay ratios 'should be published'

Can the ratio between the salaries of the highest paid and average paid workers in an organisation tell you very much?

Andrew Simms of the New Economics Foundation, said that a recent IMF report found that high pay differentials were "quite a clear indicator of impending crisis".

Perhaps counter-intuitively, he said, a large pay gap was "bad for business" as it de-incentivised all but manual workers.

But Tony Travers, local government finance expert at the London School of Economics, said that the 1:20 differential often discussed would have very little impact on the civil service.

"Top public sector pay will probably gently decline" from now on, he predicted.

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