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Historical Comparison of Public and Private Sector Compensation Levels

Public Sector Unions and the Rising Costs of Employee Compensation
Chris Edwards
Cato Journal, Vol. 30, No. 1
The Cato Institute
2010

"Figure 1 shows average compensation levels in the public and private sectors since 1950. Compensation includes wages and benefits, such as the costs of health care and pensions. The data are in constant 2008 dollars, deflated by the consumer price index.

Between 1950 and about 1980, average compensation in the public and private sectors moved in lockstep. But after 1980, public sector compensation growth began to outpace private sector compensation growth, and by the mid-1990s public sector workers had a substantial pay advantage. In the boom years of the late-1990s, private sector workers closed the gap a bit, but public sector pay moved ahead again in the 2000s."

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Chart or Graph

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Analysis Report White Paper

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Video/Podcast/Media

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Primary Document

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