Blame the Banks or The Government?

grey_gym_sock

Old_Slaphead wrote: »

Can you provide evidence to support that?

atush wrote: »

I agree, last time I read on this subject, the gap between public and private sector salaries was closed/very small. Due to wage deflation in the UK over the recession.

well, after looking at a few studies, there doesn't seem to be much agreement on which is paid more overall. it's difficult to agree how to compare like with like.

however, there does seem to be significantly higher pay for more skilled jobs in the private sector. (and the studies are looking at employees only, which omits a lot of very highly-paid self-employed ppl in the private sector - lawyers, accountants, etc - and many fewer in the public sector.)

the opposite may be true at the lower end of the pay spectrum.

it may be that comparable pay in the south is higher in the private sector, but the opposite in the north, or at least the difference is less.

given that pattern, i don't see any case - in terms of fairness between public and private sector workers - for holding down public sector pay. i can see a case for trying to improve the (relative and absolute) position of low-paid private sector workers by increasing the minimum wage - which would also help public sector finances, by reducing the cost of benefits paid to ppl in work.