Monday, May 09, 2011

Public sector pay myths

Me, in The Guardian, tackling the tired old myths about public sector pay, rehashed in a new Policy Exchange report:

According to a Policy Exchange report highlighted by the Telegraph, public sector workers are 40% better off than their private sector counterparts, if wages are taken on an hourly basis and pensions are included. This is a longstanding claim on the right, used to justify attacks on public sector pay and pensions. The problem is that neither the numbers, nor the narrative, are on the level.

1. The report doesn't compare like with like. Public sector workers are more skilled on average than private sector workers. This has always been the case, but the tendency has been increased in recent years as low-skill jobs have been contracted out, and the public sector incorporates more graduates...