Pay Differentials Between Federal Government and Private Sector Workers: Comment

Bailey, William R.
October 1977
Industrial & Labor Relations Review;Oct77, Vol. 31 Issue 1, p78
Academic Journal
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


Related Articles

  • Pay Differentials Between Federal Government and Private Sector Workers: Reply. Smith, Sharon P. // Industrial & Labor Relations Review;Oct77, Vol. 31 Issue 1, p82 

    The article focuses on the author's views on pay differentials between federal government and private sector workers. During the 1960's the federal pay procedures were revised in accordance with the principle that federal pay rates be comparable with private enterprise pay rates for the same...

  • Wrestling with pay. Moore, Alison // Public Finance;3/5/2010, p24 

    The article discusses the issue about the national pay bargaining as an initiative to ensure fair and equal wages between public and private sector employees across Great Britain. It outlines the demand of Critics, including King's College London professor Alison Wolf, to abolish the idea for it...

  • Future Compensation of the State and Local Workforce. Franzel, Joshua M. // Public Manager;Summer2009, Vol. 38 Issue 2, p58 

    The article provides an overview and forecast on the compensation between the U.S. Federal Government and its local workforce. According to the U.S. Bureau of Labor Statistics (BLS) projects, 124 million people will be employed by the U.S. private sector in 2016. With this increase in employment...

  • Bad Apples. Cavanaugh, Tim // Reason;May2012, Vol. 44 Issue 1, p70 

    The article offers information on the disparity in the compensations of the public-sector employees and private-sector employees in the U.S. It states that the total employer compensation cost in 2011 averaged 40.76 dollars per hour for state and local workers, for private industry workers it...

  • Is It Always True That Government Employees Earn Less Than Private Sector Employees? Chandoevwit, Worawan // TDRI Quarterly Review;Sep2011, Vol. 26 Issue 3, p3 

    The article presents a study which aims to explore the difference in the wages of public and private employees in Thailand. Plans of the Thai government to reduce the size of its government workforce are outlined. An overview of the labor market is provided wherein the employment rate increased...

  • PERFORMANCE, NOT MODEL EMPLOYER. Hubbard, Ruth // Optimum Online;Jun2013, Vol. 43 Issue 2, p4 

    The article looks at the premium wages paid to federal government workers in Canada. It highlights the results of an analysis conducted by the Canadian Federation of Independent Business, which showed that federal workers receive a 15 percent premium in their wages compared to their private...

  • FDA wants salary rise to iron out disparities in pay. Conrad, Mark // Public Finance;3/11/2005, p15 

    Reports on the call for pay increases from the senior civil servants in Great Britain. Disparity between the salaries of staff recruited to senior posts from within the civil service; Campaign to recruit private sector specialists to improve the central government's skill base; Pay structure...

  • Payment for performance in health care. Mannion, Russell; Davies, Huw T. O. // BMJ: British Medical Journal (International Edition);2/9/2008, Vol. 336 Issue 7639, p306 

    The authors reflect on the issue of performance based pay for physicians. They suggest that while debates about performance related pay may seem to have moved from whether it is desirable to how to make it work the medical field still does not know about potential problems related to it. They...

  • CIPFA reveals two tiers in public service.  // Public Finance;06/16/95, p3 

    Reports the creation of a two-tier public service due to lower than average pay rises in some public sectors according to the Chartered Institute of Public Finance and Accountancy in Great Britain.


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics