Contemporary Labor Economics 9th Edition by Campbell Mcconnell, Stanley Brue, David Macpherson, Robert Powell, David Colander

Exercise 1

Speculate about the reason(s) for each of the following facts about public sector pay:
a. The pay premium received by federal employees declined in the middle and late 1980s.
b. Local governments tend to pay less skilled workers more, and more skilled workers less, than comparably trained and experienced private sector workers.
c. Female and African-American workers in government receive higher pay on average than their equally qualified counterparts in the private sector.