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Same Worker, Higher Wage: A Study of Workers Who Switch from Private to Federal Employment

Numerous studies, including two separate analyses by The Heritage Foundation, have concluded that federal workers do receive a substantial wage premium. Most of these studies have used the cross-sectional human capital method, which compares federal workers to private workers who have the same skills. The cross-sectional method is not perfect, however, and supplemental analyses can be useful in confirming its results. Rather than comparing workers at a single point in time, this report follows individual workers as they switch between the federal and private sectors. It finds that workers who change jobs receive a substantially larger raise when they switch into federal employment rather than into another private job. This result corroborates the findings of the cross-sectional studies, providing further evidence that federal workers enjoy a wage premium. ....

United States , Alan Krueger , Hyop Lee , Census Bureau , Heritage Foundation , National Longitudinal Survey Of Youth , Ivy League , Program Participation , Current Population Survey , Labor Economics , Fixed Effects , Displaced Worker Survey , Sang Hyop Lee , National Longitudinal Survey , Job Switch , Federal Private Pay Disparity , Federal Workers , Federal Pay , Public Sector Unions , Ederal Wage Premium ,