Public Sector Pay Plummets as Workers Flee to Private Firms
This study looked at wage differences between public and private sector jobs using a method called difference-in-differences. By comparing how wages changed when people switched from one sector to the other, they found that moving from private to public jobs resulted in wage decreases of 6-12% over the years. On the other hand, switching from public to private jobs led to wage increases of 7-10% during the same period.