The Real Wage Gap Isn’t What You Think It Is

When most people complain about the wage gap, it’s generally understood to be in reference to gender inequality or the chasm between rich and poor. However, according to data released by the Bureau of Economic Analysis (BEA), the real wage gap is between the public and private sectors.

Wages for federal government employees jumped 2.9 percent in 2014, on average, compared to 1.7 percent for private sector employees. While growth initially slowed between 2011 – 2013, when partial freezes were enacted on government wages, such measures are no longer in place, allowing federal wages to rise once again.

Including health care and pensions benefits, federal compensation increased 2.8 percent compared to 1.3 percent in the private sector.

Overall, federal workers earned an average of $84,153 in 2014, while their private sector counterparts earned $56,350. In 2015, wages for executive branch civilian workers will cost American taxpayers $260 billion.

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