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Reconciling Differences in Federal and Private Sector Pay Comparisons
Authors:Mark Musell  Neal Masia
Affiliation:Principal Analyst at the Congressional Budget Office, 2nd and D Streets S.W., Washington D.C. 20515. E-mail address: .;Senior Economist at the Advisory Board Company, 600 New Hampshire Avenue N.W., Washington D.C. 20037. E-mail address: .
Abstract:Many comparisons of federal and private sector pay have found large federal pay premiums. Those studies have focused on individuals with similar pay-related characteristics, such as education and experience. Comparisons conducted by the federal government for purposes of determining the pay raises of federal white collar employees, however, find large federal pay disadvantages. Those comparisons focus on similar jobs. This article offers one possible explanation for the differences in results.
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