Video Summary: Public and Private Sector Earnings, March 2012

It shows some of the problems in comparing the two sectors before showing the results of a procedure aimed at best making comparisons:

• The public sector consists of a higher percentage of higher skill jobs with the private sector a higher percentage of lower skill (pay tends to increase with skill level of the job).

• The public sector consists of an older and more experienced workforce than the private sector (pay tends to increase with age and experience).

• The private sector consists of a wider pay distribution with more higher earners but also more lower earners than the public sector.

• Around 1 in 2 workers in the public sector have a degree or a further education qualification. It is around 1 in 3 in the private sector.

• Public sector workers earn more for each level of qualification up to degree level where those with a degree earn less (4.1%) than the private sector (not controlling for other factors).

• Controlling for as many of these differences as far as possible it is estimated public sector workers earned around 8.2% more per hour in April 2011 than those in the private sector.

Source: Office for National Statistics

Background notes

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   These National Statistics are produced to high professional standards and released according to the arrangements approved by the UK Statistics Authority.