Public sector workers in developing countries are not necessarily overpaid compared to private sector employees. A study of 68 countries found that while public sector workers generally earn more than all private sector employees, this wage premium disappears when compared only to formal sector private employees. High-skilled public sector workers may even earn less than their private sector counterparts in some countries. On the other hand, those with less education or in lower-skilled occupations tend to earn more in the public sector. This suggests that there is wage compression in the public sector, where differences in pay are smaller. The level of development in a country does not strongly influence the wage premium between public and private sector workers.