Abstract
Wages in the public sector are often set on the basis of comparisons with compensation in the private sector. There are reasons to suspect that this approach may result in government pay schedules that exceed those in the private sector. In this paper, with a human capital model of wage determination and a sample of older male workers, we compare wages in federal, state, and local public administration with those in the private sector, after adjusting for differences in personal and geographic characteristics. We find that the wage gaps that do exist cannot be completely explained by human capital and locational variables. Fringe benefits, job stability, and the attractiveness of the job environment also appear to be greater in the public sector.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
