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January 17, 2014



Micheal, a persistent trope of right wing attacks on the public sector has been the argument that most people who work in the public sector are in the higher earning deciles. And there is some truth to that. If, however, which is the case after Haddington Road, all of the high earning professionals in the public sector have had their pay cut, then surely if managers et al are seeing a 10% increase in weekly earnings that must mean that, in fact, managers et al in the private sector are seeing increases far beyond that but that pay cuts for their peers in the public sector are bringing the average down?


Hi Michael,

I'm a big fan of the stat attack idea, but it's obviously important to spread the posts far and wide. Am I missing the twitter/Facebook buttons?

My dozen or so followers are being denied this knowledge!

Michael Taft

Apologies for not getting back on this - apparently my new servers is not notifying me of comments.

CMK - The CSO shows that managers in the industrial and services sector experienced increases of 11 percent while in sectors with a high level of public sector involvement (but not totally), increases were 5 percent. Hard to identify the public sector element (e.g. nearly half of the health sector is private sector).

Also, there are compositional effects. For instance if more middle managers leave, that leaves a higher proportion of senior management. Data will show an average increase even though the senior managers didn't receive a pay increase (or even had a pay cut).

Ultimately, one must use common sense. There are higher gains in the private sector. And those gains are likely to accelerate as you go up the pay scale.

6to5against - I will be putting those buttons on the website. But I'm afraid I will have to wait for assistance from a family member - such is my web-ignorance, I'm likely to crash the site if I try it.

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