Tag archives for Economy
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Some thoughts on Public vs Private Pay Comparisons
News articles like this are very misleading. One might well report that police officers earn more than McDonalds employees, which is largely what it says. Neither public nor private sector are homogeneous, and there are few jobs that are directly comparable. In general most of the low-skill jobs in the public sector have been contracted out and now exist in the private sector. There are also generally higher levels of qualification in the public sector, meaning that that the balance of job weight is probably different from the private sector. The only way one can scientifically compare wages between the sectors would be to look at those jobs where there is a broad comparison and job weight can be taken into account. This survey doesn't do that, and all it does is falsely scapegoat public sector workers. For the record…