The public-sector pay gap is widening. Unions help shrink it - EPI Report

The public-sector pay gap is widening. Unions help shrink it - EPI Report

Download pdf

This report from US-based Economic Policy Institute outlines how Public-sector employees earn less than their private-sector counterparts, and that pay gap has widened in recent years. But the pay gap is narrower in states where public employees have stronger collective bargaining rights.

Key findings (US Example)

  • Nationally, the public-sector pay gap has widened in the last four years.

  • State and local government employees earned, on average, 17.6% less than similarly educated private-sector employees, compared with a pre-pandemic pay gap of 13.9%.

  • Even when factoring in more robust public-sector benefits packages, total compensation is approximately 14.5% lower for public-sector workers than for private-sector workers.

  • Collective bargaining rights for public employees vary widely across states, and this has an effect on pay gaps between public- and private-sector workers. When compared with private-sector workers, public-sector workers with strong bargaining rights (-14.9%) have a narrower pay gap than those with weak (-20.1%) or no bargaining rights (-22.9%).