A correction about research on the Public Sector Pay gap

The Facts Are Sacred post, Inaccuracies in call to cull FF sacred cows, from 2 Dec 2012 itself contained an inaccuracy. The piece said, in relation to the gap between public sector and private sector pay:

Research up to 2007 places it between 10% and 20% for full time employees – no information is available for after that date.

In fact there is more uptodate research available from the CSO in the National Employment Survey 2009/2010. We apologise for this oversight.

As previously outlined in Facts Are Sacred, both types of job and size of employing organisation correlate with salary. Highly skilled people and those working in larger organisations tend to be higher paid. The National Employment Survey in 2007 found that, after allowing for skillsets, the gap between public and private sector was 19.1% for all employees, and 12.6% for permanent full-time employees aged 25-59.

The National Employment Survey 2009/2010 continues this analysis into 2009 and 2010, with results as summarised in the table below:

They also performed a quintile regression on the results.

These results showed that the 2009 pay gap was highest at the lower end of the earnings distribution and, in general, decreased as earnings increased. For permanent full-time
employees aged 25-59 the figure was 22% at the 10th percentile (reducing to 16.5% in 2010). The differential became negative (-0.6%) at the 90th percentile in 2009 and became negative ( -0.4%) at the 82nd percentile in 2010.

Based on this analysis, the adjusted gap between public and private sector pay is decreasing year on year from its peak in 2006. The premium is greatest for the 10th centile i.e. those earning under €425.89 a week, or €22,146 per annum (CSO).

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