Study
| EST. READ TIME 2 MIN.Comparing Public and Private Sector Compensation in Ontario
As Ontario?s provincial government continues to struggle with both deficits and finding ways to constrain spending, there is heightened interest in how wages and non-wage benefits (compensation) in the public sector compare with those in the private sector. While a lack of non-wage benefits data mean that there is insufficient information to make a definitive statement about total compensation between the private and public sectors, the data that are available indicate that the public sector enjoys a clear wage premium. There are also strong indications that the public sector has more generous non-wage benefits than the private sector. After controlling for such factors as gender, age, marital status, education, tenure, size of firm, type of job, and industry, public sector workers (including federal, provincial, and local) located in Ontario in April 2011 enjoyed, on average, a 13.9 percent wage premium over their private sector counterparts. When unionization is factored in, the premium is reduced to 12.4 percent. As of 2011, 76.5 percent of public sector workers in Ontario were covered by a registered pension compared to 26.0 percent of private sector workers. In addition, 97.3 percent of Ontario?s public sector workers who were covered by a pension enjoyed a defined benefit pension plan compared to 53.5 percent of private sector workers. In 2011, job losses were greater in Ontario?s private sector than in the public sector: 3.9 percent of private sector workers lost their jobs compared to 0.7 percent of public sector workers.
Share
-
Amela Karabegovic
Amela Karabegovi is a former Senior Economist of the Fraser Institute. She holds a B.M. (Great Distinction) in General Managementfrom the University of Lethbridge in Alberta and an M.A. in Economics from Simon Fraser University in British Columbia. She was a coauthor of the Economic Freedom of North America , Economic Freedom of the Arab World , Myths and Realities of TILMA , Transparency of Labour Relations Boards in Canada and the United States , Measuring Labour Markets in Canada and the United States , Measuring the Flexibility of Labour Relations Laws in Canada and the United States , Tax and Expenditure Limitations: The Next Step in Fiscal Discipline , and the Prosperity Series-Ontario .… Read more Read Less… -
Milagros Palacios
Director, Addington Centre for Measurement, Fraser InstituteMilagros Palacios is the Director for the Addington Centre for Measurement at the Fraser Institute. She holds a B.S. in IndustrialEngineering from the Pontifical Catholic University of Peru and a M.Sc. in Economics from the University of Concepcion, Chile. Ms. Palacios has studied public policy involving taxation, government finances, investment, productivity, labour markets, and charitable giving, for nearly 10 years. Since joining the Institute, Ms. Palacios has authored or coauthored over 70 comprehensive research studies, 70 commentaries and four books. Her recent commentaries have appeared in major Canadian newspapers such as the National Post, Toronto Sun, Windsor Star, and Vancouver Sun.… Read more Read Less… -
Jason Clemens
Executive Vice President, Fraser InstituteJason Clemens is the Executive Vice President of the Fraser Institute and the President of the Fraser Institute Foundation. Hehas an Honors Bachelors Degree of Commerce and a Masters Degree in Business Administration from the University of Windsor as well as a Post Baccalaureate Degree in Economics from Simon Fraser University. Before rejoining the Fraser Institute in 2012, he was the director of research and managing editor at the Ottawa-based Macdonald-Laurier Institute and prior to joining the MLI, Mr. Clemens spent a little over three years in the United States with the San Francisco-based Pacific Research Institute. He has published over 70 major studies on a wide range of topics, including taxation, government spending, labor market regulation, banking, welfare reform, health care, productivity, and entrepreneurship. He has published over 300 shorter articles, which have appeared in such newspapers as The Wall Street Journal, Investors Business Daily, Washington Post, Globe and Mail, National Post, and a host of U.S., Canadian, and international newspapers. Mr. Clemens has been a guest on numerous radio and television programs across Canada and the United States. He has appeared before committees of both the House of Commons and the Senate in Canada as an expert witness and briefed state legislators in California. In 2006, he received the coveted Canada’s Top 40 Under 40 award presented by Caldwell Partners as well as an Odyssey Award from the University of Windsor. In 2011, he was awarded (along with his co-authors) the prestigious Sir Antony Fisher International Memorial Award for the best-selling book The Canadian Century. In 2012, the Governor General of Canada on behalf of Her Majesty the Queen, presented Mr. Clemens with the Queen Elizabeth II Diamond Jubilee Medal in recognition of his contributions to the country.… Read more Read Less…
Related Topics
Related Articles
By: Jake Fuss and Grady Munro
By: Jock Finlayson
By: Ben Eisen and Jake Fuss