Salary private vs public-Reality Check: Is public sector pay higher than private sector? - BBC News

Taxpayers' Union Executive Director Jordan Williams claimed in the Herald today that "the average public sector employee earns about a third more than a private sector counterpart". This claim clearly defies common sense. If you could get a 35 per cent pay rise by taking a public sector job, who would bother with private sector jobs? Free money like this just doesn't exist. So how did the Taxpayers' Union come up with such a wildly different result?

Salary private vs public

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The largest relative pay gap was for nonunionized private sector female teachers, — Government job security is famously, and notoriously, ironclad, oftentimes making it practically impossible to fire or lay off public-sector workers for the same reasons employees are terminated in the private sector, even in cases of poor performance Nice male booty Salary private vs public activity. Blau and Lawrence M. We leave it to the reader to interpret the regression results for models 1 through 4; we turn instead to the interpretation of the output from model 5, focusing on teachers from both sectors and on union versus nonunion effects. Accountants are in high demand — period. There have been big changes in the public sector as many of the lower-skileld jobs have been outsourced to the private sector. Thank you! Perhaps this could account for at least some of the apparent discrepancy. Figure In this section, we turn to documenting the teacher pay gaps over time to determine how they have been trending. In their paper, Allegretto, Corcoran, and Mishel found that the pay gap between female public school teachers and comparably educated women—for whom the labor market changed dramatically over the — period—fell by nearly 28 percentage points, from a relative wage advantage of Massachusetts swingers also Salary private vs public, Corcoran, and Mishel, How does teacher pay compare? The dependent variable is the logarithm of weekly earnings. CBO broke out data into different categories of educational attainment.

Erich Wagner.

  • A study using Current Population Survey data shows that, from to , elementary, middle, and high school teachers earned less than other college graduates, but the gap was smaller for public school teachers and smaller still if they had union representation; moreover, the mitigating effects are stronger for female than male teachers, so the within-gender pay gaps are much larger for male teachers.
  • The education industry is a reliable one, and the idea of sharing their knowledge with others is one that appeals to many college students.
  • But what exactly are the differences between the two?
  • For questions, contact blog cagw.
  • Erich Wagner.
  • The following seeks to address this issue in light of a new report that suggests that state and local government workers receive less total compensation than comparable private-sector workers, and to examine how issues not addressed in the study might affect those conclusions.

Proactively releasing information on public sector salaries is part of the government's commitment to being open and accountable to taxpayers.

The release shows the total number of employees disclosed under the Act continued to grow in , increasing by 19, employees, or A large portion of the increase is attributable to the Broader Public Sector, which specifically saw an increase of 17, employees disclosed, or This income disparity has steadily grown since and the average private sector Ontario worker's salary in is now The data is available in a downloadable, machine-readable, sortable, searchable table format on Ontario.

Every disclosure dating back to is also available in accessible, downloadable, sortable formats. The Treasury Board Secretariat has paused all pending compensation adjustments for public sector leaders, and all pending broader public sector executive compensation increases, while a full review takes place.

Fair and sustainable compensation costs are a key component of the provincial government's plan to ensure value for money, direct tax dollars towards front line services, and restore sustainability in the province's finances. To do this, we must put structures in place that create a culture of efficiency and balance the need to attract necessary talent with respect for taxpayer dollars.

Newsroom home page. Treasury Board Secretariat. Share this story on Facebook Tweet a link to this story Email this story Print this story.

Yes, Government Executive can email me on behalf of carefully selected companies and organizations. The resultant estimated pay gaps with nonteacher workers are now calculated for union and nonunion teachers in both sectors, yielding valuable information given that union density is high for public teachers and low for teachers in the private sector. Thus, teachers in the public arena make, on average, 21 percent more than their private sector counterparts. Learn more. Overall, total compensation for federal workers was 17 percent higher, on average, than for comparable workers in the private sector during , CBO found. The fact that public accountants can work with many different clients means they can spend more time commuting and travelling. Government Executive uses cookies for analytics and personalization.

Salary private vs public

Salary private vs public

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The Pay of the Average Government Employee Vs. a Private Sector Employee | Career Trend

A study using Current Population Survey data shows that, from to , elementary, middle, and high school teachers earned less than other college graduates, but the gap was smaller for public school teachers and smaller still if they had union representation; moreover, the mitigating effects are stronger for female than male teachers, so the within-gender pay gaps are much larger for male teachers.

The current school choice debate has many possible consequences, not just for students, but also for teachers. Broadly speaking, schools are either publicly or privately funded. Public schools are funded by the government through federal, state, and local taxes, and most are part of a larger school system. Elected school board members and education officials implement and oversee strict rules and procedures that public schools must follow.

Private schools do not receive government money and thus have to raise their own funds. Private school officials may have more leeway to run schools as they see fit, but funders and others may play a significant administrative role.

Given the proliferation in school privatization, this article analyzes the fundamental differences between the two sectors with regard to teacher staffing and pay disparities. We employ the Current Population Survey CPS to document differences between teachers in the two sectors with regard to unionization density, gender and race or ethnicity, educational attainment, and relative pay gaps between public and private sector teachers and between both and other college graduates.

The debate about school privatization and the push toward both publicly and privately funded charter schools should include differences in teacher staffing and relative pay by school ownership. Staffing and pay differences across type of ownership may be due to or may influence factors such as teacher cohesion and student achievement. For example, teachers may trade off between pay and safer schools or smaller class sizes. The pupil—teacher ratio in was The teachers studied in this article are elementary, middle, and secondary school teachers.

Previous research on relative teacher pay has either analyzed teachers without respect to the type of school ownership or restricted the analysis to those employed in the public sector. Moreover, much of the focus has been on identifying a reasonable comparison group or set of occupations similar to teaching.

Student academic achievement depends in large part on the quality and experience of teachers. Thus, the ability of schools to recruit and retain excellent instructors is of great importance and is fundamentally linked to relative teacher pay. The opportunity cost of choosing to become a teacher is high if relative teacher pay falls substantially behind the pay of other professionals or other career paths. This consideration of opportunity cost also applies when teachers are deciding between the two sectors.

Research on elementary and secondary school teachers has shown that their pay has not been commensurate with that of other professionals and the gap has been widening. Critics of the article inveighed against their selection of teachers from both sectors, because the two sectors differ on several fronts, making the teacher pay gap appear even larger with the inclusion of the private sector teachers.

In response, in Allegretto, Corcoran, and Mishel published the results of a study in which the sample of teachers was restricted to those in the public sector.

This work showed that public school teachers earned, on average, 15 percent less than comparable workers in but had slightly better fringe benefits than other professionals had—making up close to 2 percentage points of the pay gap. Both studies documented long-run increases in the teacher pay gap, especially for women.

In their paper, Allegretto, Corcoran, and Mishel found that the pay gap between female public school teachers and comparably educated women—for whom the labor market changed dramatically over the — period—fell by nearly 28 percentage points, from a relative wage advantage of Furthermore, the teacher pay gap has been linked to a sharp decline in high-achieving graduates entering the teaching profession, with potential candidates preferring other careers.

Among the main demographic findings are that 1 teachers, regardless of whether they are in the public or private sphere, are overwhelmingly female and 2 w hites are overrepresented, while Blacks and Hispanics are underrepresented, in the teaching profession, compared with their respective shares in the workforce.

Also, unionization rates differ starkly by sector, by Census division, and for teachers, compared with the workforce in general: regardless of the Census division in which they work, teachers in both sectors have higher union density compared with the overall workforce in the corresponding sector.

Furthermore, the union density of public sector teachers is greater than that of their private sector counterparts—and this public—private disparity holds for the overall workforce, by sector, for each division.

Given the documented importance of gender, other demographics, and union representation in the literature, 9 a regression-based approach is utilized to estimate relative teacher pay. A repeated cross section of respondent data from to is pooled to estimate pay gaps for four teacher groups: unionized public sector teachers, unionized private sector teachers, nonunionized public sector teachers, and nonunionized private sector teachers.

Thus, we compare teacher pay relative to that of comparable workers and among the four teacher groups. Main results from our regression-based analyses reveal that nonunionized teachers in the private sector have the largest pay gap — The relative teacher pay gaps are larger for male teachers than for female teachers. We use CPS data from through These data allow for the identification of workers by occupation, education, industry, age, gender, race, union affiliation, and state of residence, along with weekly earnings.

Thus, we are able to identify teachers and whether they work in publicly or privately owned schools. The use of the CPS does not allow for the separate identification of finer sector details, such as breaking out religious-based schools or comparing private and public sector charter schools.

The CPS data used in this analysis are nonimputed data. Importantly, occupation is not necessarily one of the criteria used to impute earnings, and nonresponding teachers are often assigned the average earnings of nonteacher college graduates. Thus, on average, the inclusion of imputed data creates a systemic bias that increases average teacher pay and decreases the average pay of other college graduates. In addition, the share of CPS earnings data that are imputed has grown markedly over time; hence, the bias has worsened.

In , imputed earnings data in the CPS were Imputed data are not available in and only for the last 4 months of ; thus, for consistency, we begin our analysis in The sample is restricted to workers 21 years of age and older who worked at least 35 hours per week.

It is composed of 1. The first part of the analysis is descriptive and reports differences in staffing trends between the two sectors by demographics, as well as differences in union affiliation and average weekly pay. Then, econometric methods are used to analyze and compare the relative pay differentials between teachers in the two sectors and between teachers and nonteachers. The fundamental differences reported in the descriptive statistics are utilized as important controls in the econometric analysis.

Initially, a pooled repeated cross-sectional dataset generates regression-based estimates, controlling for time. Lastly, annual estimates are generated from through to report relative pay trends over time. Table 1 shows the staffing differences of teachers in the two sectors by demographic and other characteristics.

On average over the entire sample period, the majority of teachers were employed in public schools 85 percent while most nonteachers worked in the private sector 84 percent. However, the public sector share of all teachers decreased over time, falling from 85 percent in to 81 percent in Thus, the incidence of teachers in the private sector has trended upward over time, with the share of private sector teachers working at for-profit schools increasing from 6 percent in to 10 percent in more than the share working at nonprofit schools from 9 percent to 10 percent.

Note: Weighted sample of workers who worked at least 35 hours per week and were at least 21 years old. Imputed data are excluded. Detailed entries may not sum to totals because of rounding. Teaching remains a feminized occupation, with stark differences in the gender makeup of teachers compared with that of the overall workforce.

Although women accounted for approximately 44 percent of the overall sample, they are disproportionally represented as teachers. Moreover, their share has not changed much over time. Women account for a slightly higher share of teachers in the private 73 percent versus the public 72 percent sector.

Table 1 also shows differences between teachers in the private and the public sectors with regard to race, percentage of union membership, education level, and weekly pay. We next examine these differences in detail. Race or ethnicity. The racial and ethnic makeup of teachers has changed over time, reflecting, in part, the racial shift in the overall population and workforce. Figure 1 shows the racial or ethnic share of workers and teachers in both sectors over time.

Note that the share of non-Hispanic Whites in the overall workforce, in both sectors, has declined over time, as has the share of White teachers, although Whites are consistently overrepresented in the teaching profession. The share of Black workers who are not teachers has remained fairly steady in the private sector, at 9 percent to 10 percent, over time.

Because Blacks represent a relatively higher, albeit slightly decreasing, share of workers in the public sector, 13 they are a disproportionate share of public workers in the nonteacher workforce. However, Blacks are underrepresented as teachers in both ownership arrangements. Figure 1 also depicts the growing share of Hispanic workers in the United States. During the — period, Hispanic shares of the private sector nonteacher workforce increased from 12 percent to 17 percent and Hispanic shares of the public sector nonteacher workforce grew from 8 percent to 11 percent.

Hispanic shares of teachers also increased over the same timeframe, from 4 percent to 8 percent in the private sector and from 5 percent to 9 percent in the public sector.

Despite this relatively equal growth, Hispanics remain far more underrepresented as teachers in the private sector than in the public sector. For instance, in —, Hispanics were 17 percent of the private sector workforce but just 8 percent of teachers in the private sector.

The disparity was smaller in the public sector, where Hispanics were 11 percent of the workforce and 9 percent of teachers.

Shares of this cohort have been growing, but diverging, over time. Generally, Hispanics are more likely to be employed in the private sector while Blacks are more likely to work in the public sector. Thus, teacher underrepresentation for Hispanics is far greater in the private sector, whereas, for Blacks, it is far greater in the public sector. There are also large differences in the educational attainment of teachers across the two types of ownership.

Figure 2 also shows the trends for nonteacher workers. In both the public and the private sector, the share is much lower than that for teachers in either sector. The percentage of workers represented by a union union members or workers covered by a union contract is one of the main institutional differences between the two sectors.

Figure 3 shows the trends in union representation for teachers and for all nonteacher workers, for both sectors. The well-known longer term decline in unionization in the United States is evident in the trend line for the nonteacher private sector workforce. Union representation among this workforce fell from 12 percent to 8 percent over the — period.

Public sector unionization was consistently higher, for both teachers and nonteachers, but all the rates are declining except those for private school teachers, which are erratic, perhaps because of the smaller sample size. Still, the general trend for this group has been flat. The union—nonunion gap for teachers across the two sectors is very large: in , union density was 68 percent in the public sector and 31 percent in the private sector. Note: , , and data from CPS were pooled in order to obtain suitable sample sizes, particularly for male private school teachers.

Figure 4 shows union densities for teachers and nonteachers across the two sectors and by Census division. Large disparities exist in particular in the low-union-density West South Central division Arkansas, Louisiana, Oklahoma, and Texas , in which teacher unionization rates are 42 percent in the public sector and 28 percent in the private sector while rates for the nonteaching workforce are a much smaller 18 percent in the public sector and 4 percent in the private sector.

Weekly wages. Figure 5 shows the mean weekly wages of various groups of workers. Over the — period, trends in real wages in dollars were up for all groups by various degrees. Wage growth from through was highest for the all-worker group Average wages for college graduates increased by

Salary private vs public