The public sector retains its pay advantages but is no longer attractive at the start of a career, a Banco de Portugal (BdP) study released today concludes.
The analysis included in the institution’s June Economic Bulletin, updated today, shows that a public sector licensed worker has about 35 percentage points (ppt) higher wage growth at the end of his career compared to the private sector. compared to input point.
“Between 2008-09 and 2018-19, this growing differential profile continued, but there was a roughly even decline throughout the career,” he notes nonetheless.
The study highlights that while there was a premium for all levels of public sector work experience in 2008–2009, this does not currently apply to graduates early in their careers.
“So the public sector has lost the ability to attract young graduates compared to the private sector,” he says.
For those with no higher education, the analysis concludes that the wage gap becomes positive only after 28 years of service in the case of education equal to or less than 9 years, and after 20 years of service for those who have completed the 12th grade. year.
The BdP explains that the average public sector wage premium is around 11% in 2018-2019, down about 3 p.p. from 2008–2009.
The public sector wage premium is higher for people with higher education (23% in the latest period), although a 9% bonus is also observed for people who have completed 12 classes.
“Part of the graduate premium is due to the higher proportion of graduates in lower-skilled jobs in the private sector than in the public sector,” he explains.
In the most recent period, half of the human resources in the public sector are licensed compared to 20% in the private sector, although educational levels have improved in both sectors.
According to the BdP, the public sector also differs from the private sector in the high proportion of women (over 60%), higher average work experience (over four years) and lower average number of hours worked.
Author: Portuguese
Source: CM Jornal
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