Minority Workers in the Public Sector
Another reason for that intolerably high public sector compensation premium —
Further to my earlier post showing that the public/private sector pay gap is mainly due to more equal pay for women in service jobs,Â a recent piece from Canadian Public Policy by Hou and Coulombe shows that the pay gap between Canadian born racialized workers and non racialized workers exists almost entirely in the private sector and not in the public sector.
“This study examines earnings gaps between Canadian-born visible minorities and Whites in the public and private sectors. Based on the 2006 census data, this study shows that visible minorities and Whites receive similar pay for similar jobs in the public sector. By contrast, in the private sector visible minority men earn significantly less than observationally comparable Whites. Among large visible minority groups, Black men face a large earnings gap in the private sector while Black women face a large gap in both the public and private sectors. For Chinese and South Asians, small gaps in adjusted earnings exist only among men in the private sector.”
The more equitable outcomes prevalent in the public sector are due to collective bargaining and pay and employment equity legislation.Â Those who tout the superiority of supposedly market driven pay structures in the private sector seem to beÂ ignoring the reality of discrimination against women and racialized workers.