TITLE

Pay Differentials Between Federal Government and Private Sector Workers: Comment

AUTHOR(S)
Bailey, William R.
PUB. DATE
October 1977
SOURCE
Industrial & Labor Relations Review;Oct77, Vol. 31 Issue 1, p78
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The article focuses on pay differentials between federal government and private sector workers. In a recent article, economist Sharon P. Smith assesses the federal government's comparability pay policy, which is intended to provide equal pay for comparable work in the federal and private sectors. Smith argues that if this policy has been successful, workers who are comparable in their personal and productive characteristics should receive comparable pay. Smith estimates human capital earnings functions for federal and private workers in 1960 and 1970, regressing both annual earnings and hourly wages on education, work experience, and personal characteristics. She concludes that the comparability policy has not worked in that a substantial economic rent accrues to the federal worker. This comment takes issue with much of Smith's analysis. Smith's analysis is limited to the residents of Delaware, Maryland, Virginia, and the District of Columbia, chosen to obtain enough federal workers and comparable private sector workers in approximately one labor market
ACCESSION #
4455073

 

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