The compensation in the public sector often receives high attention in the media and in the ongoing debate about the efficiency of the public sector. But how much do we really know about the wages in the public sector in comparison to the private one? Also, how do the wages of public sectors differ among OECD countries?
A new database released by the OECD, based on the data collected for the Government at a Glance 2013 publication, allows you to compare your country to other member countries. The database include three indicator for comparison between countries:
1. Annual gross compensation in USD at purchasing power parities (PPP).
2. Annual gross compensation relative to the salary of all tertiary educated in the economy- which allows to compare the salary in the public sector (especially among high level managers) with the private sector.
3. Annual gross compensation relative to GDP per capita- this indicator represents the individual’s prosperity in a country and thus efficient in comparing between the private sector with the lower ranking employees in the public sector.
By comparing Israel to the OECD average (see graph below) , we can clearly see that public servants in Israel are being payed less and the gap between Israel and the OECD average is even wider in the lower ranks. However, when we compare it relative to all the territory educated in the economy, we see a slightly different picture. Senior managers in Israel are paid 4.8 more than the average educated person in Israel, which is higher than the OECD average (3.4) . Finally, by comparing the GDP per-capita to wage ratios, we see that the lower ranks in Israel (except secretaries) on average gain less than the OECD counter parties.