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That public sector public sector pay thing, again July 28, 2016

Posted by Tomboktu in Economics, Equality.

Those public sector workers are creaming it, unlike the private sector workers, right?

The key results of the report suggest that earnings of employees in the study fell during the 2008 to 2010 period with the exception of the bottom quartile (Q1) where earnings remained almost constant. The period 2010 to 2013 was characterised by increases in earnings in both the public and private sectors. In all quartiles in the private sector average earnings in 2013 were higher than in 2008, with the highest earners (Q4) experiencing the largest increase over this time period. This contrasts with the public sector where the highest earners in the public sector actually experienced a fall in average earnings over the 2008 to 2013 period while those with the lowest earnings (Q1) experienced the largest increase in earnings.

Oh. That’s from a new study from the Economics Department of UCC using data on earnings from the Revenue Commissioners.

And then there’s this:

Over the period there has also been a marginal increase in inequality in the sample considered. However, there is divergence between the public and private sector. While the private sector experienced rising inequality over the full period the public sector actually experienced falling inequality, with earnings converging during the 2008 to 2013 period. There was relatively higher growth in earnings in the highest earnings quartile in the private sector. In the public sector a fall in earnings in the highest quartile and increases in earnings in the lowest quartile are evident.

In fairness, it comes with caveats: you had to be in paid employment full time for the full year every year between 2008 and 2013 to be included in the study, and that means thousands of workers are excluded.


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