Comparing Compensation: State-Local Versus Private Sector Workers


An examination of whether benefits close the wage gap between public and private sector workers. The analysis found that the compensation of state-local and private sector workers is similar.

Alicia H. Munnell, Jean-Pierre Aubry, Josh Hurwitz, and Laura Quinby of the Center for Retirement Research at Boston College
Publication date:
September 2011
Filed under:
Research Studies
Key findings:
  • State and local workers have a wage penalty of 9.5 percent.
  • Pension contributions and retiree health insurance help close the gap.
  • Total compensation for public sector workers is about 4 percent less than that in the private sector.
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