Government wage differentials revisited

This paper updates studies done in the mid-1970s concerning the measurement of government wage differentials in the United States. Based on an analysis of two large micro data sets, we reached the following conclusions. First, as a group, government employees earned a small wage premium of approximately 2 to 3 percent during the 1970s and early 1980s. Second, the government wage premium was substantially higher for federal employees and for women employees. These findings are consistent with earlier studies. We thank Eanswythe Leicester and Ken Emery for their research assistance and Diane Kurtz for her clerical assistance.