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Are Public Sector Employees Overpaid Relative To Private Sector Employees An Overview Of The Studies
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Book Synopsis Are Public-Sector Employees 'Overpaid' Relative to Private Sector Employees? An Overview of the Studies by : Joseph E. Slater
Download or read book Are Public-Sector Employees 'Overpaid' Relative to Private Sector Employees? An Overview of the Studies written by Joseph E. Slater and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The laws eliminating or severely restricting the collective bargaining rights of public-sector unions passed since 2011 are one of the most important developments in both workplace law and politics in recent memory. Among other things, public-sector workers now comprise more than half of all union members in the U.S., and such unions are a major constituency of the Democractic Party. Proponents of these new laws often justify them at least in part by claiming that public employees are overpaid relative to private sector employees. This paper focuses on a large and representative selection of studies comparing the compensation of public- and private-sector employees. It reviews their findings and methodology, noting the assumptions and data-sets used. It also draws some conclusions as to the policy implications of the works discussed herein. In sum, a majority of studies have found that public workers on the whole are paid somewhat less than comparable private sector employees, but there are significant dissenting voices. A consensus has formed around a few findings. Studies almost all find that at the very bottom of the pay scale, public workers enjoy slightly higher compensation than their private-sector analogs, while at the upper end of the scales (lawyers and other professionals, e.g.), public workers are paid less than comparable private-sector employees. Most of the disagreements, therefore, are about employees in the middle of the pay scale. Second, almost all studies agree public workers receive less “take home” pay than private-sector workers, but they generally receive more generous health and pension benefits. When combining pay and benefits, a majority of studies still find a “public-sector penalty,” but others do not. Important methodological differences include how to calculate the value (and current cost) of future benefits, how to compare certain types or ranges of jobs across sectors, and whether to assign value to “job security” for government employees. For example, some public-sector jobs have direct private-sector analogs (janitors and lawyers), and some do not (police and firefighters). Furthermore, even jobs with the same title may not involve the same work. Also, controlling for employer size seems to matter: Studies that do not use such controls are more likely to find a public-sector premium than studies that do.
Book Synopsis Are Ghana’s Public-Sector employees overpaid? by : Younger, Stephen D.
Download or read book Are Ghana’s Public-Sector employees overpaid? written by Younger, Stephen D. and published by Intl Food Policy Res Inst. This book was released on 2017-12-22 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: Ghana is again experiencing large and chronic fiscal deficits that many analysts attribute to a sharp increase in its the public-sector wage bill. This study uses macroeconomic and household survey data to examine public employment and public wages both historically and in comparison with private-sector wages. Although we do find a public-sector wage premium in the most recent data (for 2012/2013), it is not as large as one would expect from the macro data, totaling only 15 to 28 percent of the public-sector wage bill, or 2 to 3 percent of gross domestic product. That is far from enough to eliminate the government deficit. To make further reductions in the wage bill, policymakers must either make the normative case that public-sector workers should be paid less than private-sector workers with similar qualifications, something that will be difficult politically, or they must adjust the required skill levels of public-sector employees downward, something that may not make administrative sense. There is some low-hanging fruit in the public-sector wage bill, but not enough to resolve Ghana’s fiscal crisis.
Book Synopsis How Do Public Sector Wages and Employment Respond to Economic Conditions by : Richard B. Freeman
Download or read book How Do Public Sector Wages and Employment Respond to Economic Conditions written by Richard B. Freeman and published by . This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the changes over time in public sector wages and employment relative to private sector wages and employment using data from surveys of establishments and individuals. The paper finds that:(1) The pay of public sector workers relative to private sector workers varies greatly over time. Contrary to the view that public sector payis inflexible, variations in relative pay are due as much to fluctuations in public pay as to fluctuations in private pay.(2) The relatively high paid public sector worker of the early 1970s has within the span of a decade lost much of his or her advantage over otherwise comparable private sector workers, seriously denting if not destroying the picture of the 'overpaid' public employee which developed in the early 1970s.The group of public sector workers who tend to be most highly paid in the U.S. relative to private sector workers are blacks and women, suggesting that the public sector discriminates less than does the private sector.(3) Differentials in public and private sector pay vary greatly depending on the nature of comparisons, with for example Current Populations Survey comparisons of individuals with similar broad human capital showing federal employees to be higher paid than private employees and Bureau of Labor Statistics surveys of wage rates in particular occupations showing federal workers to be lower paid.(4) Public sector employment follows a very different pattern of change than private sector employment. It has smaller annual variation, and moves counter cyclically rather than cyclically. In terms of demographic composition the public sector employs relatively more blacks and women than the private sector.
Book Synopsis How Do Public Sector Wages and Employment Respond to Economic Conditions? by : Richard Barry Freeman
Download or read book How Do Public Sector Wages and Employment Respond to Economic Conditions? written by Richard Barry Freeman and published by . This book was released on 1985 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the changes over time in public sector wages and employment relative to private sector wages and employment using data from surveys of establishments and individuals. The paper finds that:(1) The pay of public sector workers relative to private sector workers varies greatly over time. Contrary to the view that public sector payis inflexible, variations in relative pay are due as much to fluctuations in public pay as to fluctuations in private pay.(2) The relatively high paid public sector worker of the early 1970s has within the span of a decade lost much of his or her advantage over otherwise comparable private sector workers, seriously denting if not destroying the picture of the 'overpaid' public employee which developed in the early 1970s.The group of public sector workers who tend to be most highly paid in the U.S. relative to private sector workers are blacks and women, suggesting that the public sector discriminates less than does the private sector.(3) Differentials in public and private sector pay vary greatly depending on the nature of comparisons, with for example Current Populations Survey comparisons of individuals with similar broad human capital showing federal employees to be higher paid than private employees and Bureau of Labor Statistics surveys of wage rates in particular occupations showing federal workers to be lower paid.(4) Public sector employment follows a very different pattern of change than private sector employment. It has smaller annual variation, and moves counter cyclically rather than cyclically. In terms of demographic composition the public sector employs relatively more blacks and women than the private sector
Book Synopsis Are Public Sector Workers Underpaid? by : Sarah Bales
Download or read book Are Public Sector Workers Underpaid? written by Sarah Bales and published by World Bank Publications. This book was released on 2001 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: Does the public sector overpay or underpay workers relative to what they could earn in the private sector? Usual comparisons focus on similar jobs, but in a Developing country it is more sensible to focus on similar workers, as shown by the case of Vietnam.
Book Synopsis When Public Sector Workers Unionize by : Richard B. Freeman
Download or read book When Public Sector Workers Unionize written by Richard B. Freeman and published by University of Chicago Press. This book was released on 2007-12-01 with total page 444 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the 1980s, public sector unionism has become the most vibrant component of the American labor movement. What does this new "look" of organized labor mean for the economy? Do labor-management relations in the public sector mirror patterns in the private, or do they introduce a novel paradigm onto the labor scene? What can the private sector learn from the success of collective bargaining in the public? Contributors to When Public Sector Workers Unionize—which was developed from the NBER's program on labor studies—examine these and other questions using newly collected data on public sector labor laws, labor relations practices of state and local governments, and labor market outcomes. Topics considered include the role, effect, and evolution of public sector labor law and the effects that public sector bargaining has on both wage and nonwage issues. Several themes emerge from the studies in this volume. Most important, public sector labor law has a strong and pervasive effect on bargaining and on wage and employment outcomes in public sector labor markets. Also, public sector unionism affects the economy in ways that are different from, and in many cases opposite to, the ways private sector unionism does, appearing to stimulate rather than reduce employment, reducing rather than increasing layoff rates, and developing innovate ways to settle labor disputes such as compulsory interest arbitration instead of strikes and lockouts found in the private sector.
Book Synopsis Are Public Sector Workers Underpaid? Appropriate Comparators in a Developing Country by : Sarah Bales
Download or read book Are Public Sector Workers Underpaid? Appropriate Comparators in a Developing Country written by Sarah Bales and published by . This book was released on 2016 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: Does the public sector overpay or underpay workers relative to what they could earn in the private sector? Usual comparisons focus on similar jobs, but in a developing country it is more sensible to focus on similar workers, as shown by the case of Vietnam.How is public sector compensation best aligned with the market? In industrial countries a common reference is the salary paid by private employers for similar jobs (the quot;jobs approachquot;). But comparable jobs are formal, and in developing countries the relevant alternative for many public sector workers is informal sector employment.Another approach uses as a reference the earnings of similar workers in the private sector, regardless of whether their jobs are formal or informal (the quot;workers approachquot;). A potential shortcoming of this approach is that workers may differ in characteristics that are unobservable. Bales and Rama assess the importance of this shortcoming by relying on five econometric methods, four of which correct the bias from unobservable characteristics.The authors focus on state-owned enterprises in Vietnam, which recruited workers on the basis of political loyalty and other unobservable characteristics. A massive downsizing program, which led to the departure of the most entrepreneurial workers, may have exacerbated the selection bias. However, all the results obtained with the workers approach fall within a relatively narrow range. They suggest that workers in state-owned enterprises are overpaid by 20 percent or more. In contrast, the jobs approach indicates that they could earn two to six times more in the private sector.This paper - a product of Public Services for Human Development, Development Research Group - is part of a larger effort in the group to understand employment and pay issues in the public sector. The study was funded by the Bank's Research Support Budget under the research project quot;Efficient Public Sector Downsizingquot; (RPO 683-67). Martin Rama may be contacted at [email protected].
Book Synopsis Are Ghana's Public-sector Employees Overpaid? by : Stephen D. Younger
Download or read book Are Ghana's Public-sector Employees Overpaid? written by Stephen D. Younger and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis The Truth about Public Employees Underpaid Or Overpaid? by : Dale Belman
Download or read book The Truth about Public Employees Underpaid Or Overpaid? written by Dale Belman and published by . This book was released on 1993 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Public Sector Pay Determination in the European Union by : Robert Elliott
Download or read book Public Sector Pay Determination in the European Union written by Robert Elliott and published by Springer. This book was released on 1999-07-05 with total page 371 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book examines the procedures for determining the pay of public sector workers in six European Countries: France, Germany, Italy, Spain, Sweden and the UK. It reveals how rates of pay in the public sector compare to those in the private sector of each country and how the pay structure is, in all cases, quite different in the two sectors. The book also provides an explanation for the differences in pay between the sectors distinguishing the role played by the quite different institutions for setting public sector pay in the six countries.
Book Synopsis Comparison of Federal and Private Sector Pay and Benefits by : United States. General Accounting Office
Download or read book Comparison of Federal and Private Sector Pay and Benefits written by United States. General Accounting Office and published by . This book was released on 1985 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: Pursuant to a congressional request, GAO provided current information on private sector and federal white-collar employee compensation packages. By law, federal employees' salaries are set at a level equitable and comparable with similar levels of work in the private sector, unless the President proposes alternative federal pay rates. There is no such requirement for benefits comparability. GAO analyzed several pay and benefits comparability studies conducted by private and federal organizations, but did not independently validate the data contained in the studies. GAO noted that an independent study found that: (1) as of 1984, federal employees' total compensation averaged 7.2 percent less than that for private sector employees; and (2) in 1985, the difference increased to 9 percent or more because the federal pay increase for 1985 was limited to less than the average pay increase in the private sector. GAO found that: (1) frequent presidential use of alternative pay rates caused pay for federal employees to lag significantly behind that for private sector employees; (2) an 18.28 percent federal pay increase would be necessary to achieve federal pay comparability in 1985; (3) the federal retirement system is better than the average private sector system because it is worth more as a percentage of the average employee's pay, and federal retirement benefits are adjusted annually to offset consumer price increases; (4) private studies indicated that private sector employers generally pay a higher share of employee health insurance premiums than does the government; (5) private sector employee life insurance programs provide more basic coverage than the federal employee program, usually at no cost to the employee; (6) while federal employees generally receive one less holiday than private sector employees, this is offset by more generous federal annual leave benefits; and (7) federal sick leave lags behind the average private sector illness and disability income plan by 0.7 percent of pay.
Book Synopsis Are Public Sector Workers Paid More Than Their Alternative Wage? by : Alan B. Krueger
Download or read book Are Public Sector Workers Paid More Than Their Alternative Wage? written by Alan B. Krueger and published by . This book was released on 1988 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper performs a longitudinal comparison of public and private sector pay. Although not decisive because of small sample sizes, the results tend to corroborate the conclusions of previous cross-sectional studies. Specifically, I find that on average wages of federal workers exceed those of private sector workers by 10% to 25%, while wages of state and local government workers are roughly equivalent to or slightly less than the wages of private sector workers. Furthermore, these conclusions hold for a sample of workers who joined the government after being involuntarily displaced from their private sector jobs. In addition, a comparative analysis of the length of job queues suggests that on average more workers apply for job openings in the federal government than in the private sector. Finally, both longitudinal and cross-sectional analyses support the conclusion that the union wage gap is substantially smaller in the public sector than in the private sector
Book Synopsis Public Sector Wage Determination by : Morley Gunderson
Download or read book Public Sector Wage Determination written by Morley Gunderson and published by . This book was released on 1977 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Are Public Sector Workers in Developing Countries Overpaid? Evidence from a New Global Data Set by : Rong Shi
Download or read book Are Public Sector Workers in Developing Countries Overpaid? Evidence from a New Global Data Set written by Rong Shi and published by . This book was released on with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis The True Size of Government by : Paul Charles Light
Download or read book The True Size of Government written by Paul Charles Light and published by Brookings Institution Press. This book was released on 1999 with total page 272 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this book-- the first that attempts to establish firm estimates of the shadow work force-- Paul C. Light explores the reasons why the official size of the federal government has remained so small while the shadow of government has grown so large.
Book Synopsis How Public Sector Pay and Employment Affect Labor Markets by : Gail Stevenson
Download or read book How Public Sector Pay and Employment Affect Labor Markets written by Gail Stevenson and published by . This book was released on 1992 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: The role of the public sector-theory and stylized facts; The public sector-paradigm lost; Empirical studies.
Book Synopsis Government Employment and Pay by : Mr.Peter S. Heller
Download or read book Government Employment and Pay written by Mr.Peter S. Heller and published by International Monetary Fund. This book was released on 1983-10-31 with total page 78 pages. Available in PDF, EPUB and Kindle. Book excerpt: How many people are employed by the government? How many are employed by the central government compared with the state and local authorities? How many are employed in public enterprise? How much are they all paid? How much are they paid relative to each other, or relative to the private sector? Such questions interest people in general and economists and policymakers in particular; yet it is remarkable how little information is readily accessible on thes topics.
