Public Apples, Private Oranges: A More Ripened Look
In a previous post, I criticized articles in the USA Today and elsewhere (all citing data from the conservative Cato Institute), which claimed that federal government workers earn almost twice as much as private sector employees (including salary and benefits). I argued that en masse comparisons of public and private sector workers don’t tell us much, since the jobs that comprise the two sectors are very different.
For a more useful comparison, we need to understand not only that most public sector workers are professionals, but also that they tend to be more experienced, and more quickly promoted, than the typical private sector employee. For example, a lead research scientist will earn more than his or her staff scientists, whether they are working in the public or the private sector. So, if public sector employees in a given occupation tend to be more experienced or have more authority or responsibilities, they will appear “overpaid” even though they are not.
So, how does the public/private wage gap look when we compare professionals in the two sectors by both occupation and experience/responsibilities?