For some people, it pays to work in the public sector. But others in government make about the same or less money than their peers in the private sector.
Education level seems to have the biggest impact on base salaries, according to a 2012 report by the Congressional Budget Office.
Economists who compared the wages and benefits of federal employees against workers in the private sector found that less-educated government workers earn more than their private-sector counterparts. However, government workers with professional or doctoral degrees take home considerably less money than those in the private sector.
A variety of studies over the years suggest that these patterns also hold true for state and local government workers, although “apples to apples” comparisons of private and public salaries are difficult because of the differences in jobs and job duties between the two, economists warn.
Doctors, lawyers and top-tier managers could earn much more money in private practice than working for government, even when taking into account the generous benefit packages many government agencies provide, the Congressional Budget Office report said. Government workers with a bachelor’s or master’s degree tend to make about the same base salaries as their private-sector peers — but those in government have better benefits, including vacation days, sick days, pensions and health insurance costs — which drive up the value of their total compensation package.
The nonpartisan report took into account several variables to ensure a valid comparison, controlling for education, experience, occupation and gender, among other things.
Here’s how things shook out for federal employees regarding total compensation (wages and benefits):
• Those with a high school diploma or less earned an average of 36 percent more than their private-sector peers.
• Those with a bachelor’s degree earned an average of 16 percent more than their private-sector peers.
• Those with a professional or doctorate degree earned an average of 18 percent less than their private-sector peers.
The city of Vancouver and Clark County don’t regularly track information about their employees’ degrees, according to their respective human resources departments.
The county, however, did a survey in 2014 of its employees to see what degrees they held, HR Director Francine Reis said. About 60 percent of county employees responded. Of those, 12.7 percent had master’s degrees and 3.4 percent had professional degrees.
In 2014, salaries and benefits comprised 40 percent of the city of Vancouver’s total operating budget. Salaries and benefits comprised 51 percent of the city’s 2014 general, street and fire funds, which are mostly fueled by taxes, according to Deputy Finance Director Natasha Ramras.
Of Clark County’s $904 million biennial budget for 2013-2014, 33.8 percent, or about $305 million, went toward payroll. That does not, however, include overtime, which is considered a department-controlled expense, Budget Director Adriana Prata said.
Kaitlin Gillespie contributed to this story.
