Public- and private-sector jobs: a cross-country perspective

Abstract

Abstract This article reassesses the conventional wisdom that public-sector jobs have worse pay but better amenities than equivalent private-sector jobs, using data from 22 European countries and the USA. Earnings gaps are shown to be heterogeneous across countries—public sector work carries a premium in Europe but a penalty in the USA. However, whereas European public-sector workers report better job amenities—better job security and work–life balance—than their private-sector counterparts, there are no public–private amenity differentials for US workers. Public-sector work also has fewer pay-for-performance schemes. Finally, the public sector does not seem to ensure a fairer work environment, compared to the private sector, in terms of workplace discrimination and harassment. These stylized facts inform the external validity of extrapolating individual case studies to different contexts.