What is wrong with this picture: Government Workers Earn More Than Their Private-Sector Counterparts?

[melville]

This is why unions are a great thing to have.

[elkan80]

More people need to join the union?

[eadweald71]

More people need to join the union?

OK...who do I have to kill to get a government job?

[dent81]

Whats wrong is that it's completely false.

Someone who works for the government earns measurably less than their counterpart in the private sector. I see this first-hand.

Now, the average government worker does earn more than the average private sector worker. But that's because almost all government workers are educated, white collar workers. The lowest-paying jobs in the private sector just don't have equivalents in the public sector.

So... if you average out all the jobs, public sector employees make more than private sector. But if you look at any public sector job and compare it to the private sector equivalent, like your question says, the private sector guy makes more. Usually a lot more.

[broehain61]

The reason that compensation was 36% higher than employees with high school degrees and 32% higher for those with "some" college is because of the benefits. In the private work force, non-professionals rarely get any sort of 'real' benefits (and what they do get is sh$t). The Federal Governments provides the same lvl of benefits regardless of if you are a Janitor, a Lawyer, a Doctor, an Administrative Assistant etc.

With saying that, the Federal Government "contracts" most lower level positions out. There are very few workers in the Federal Government who just have a high school diploma or just "some" College. Most Federal Emloyees have bachelor degrees.

So when we look at those individuals with bachelor degrees (who make around 15% more than there private counter parts) is that much of that has to do with AGE (and where people are in there careers). The Fedeal Workforce is OLDER than the private work force (the last article I read said the average age was 5 - 7 years older than the private work force). Older people have been in the system far longer and naturally make MORE.

If you look at the pay of private auditors (which is what I do), the guy who has been with an audit company 5 - 7 years longer is certainly going to be getting paid more than the new higher (even if the work is similiar). Obviously the older guy has a tad bit more responsibility and knowledge but the core job is rarely different (and I make more than $30K more than a new hire).

So whats my overall point? Statistics don't paint the entire picture. They are useful but you need to put the numbers in context.