Are Ghana’s Public-Sector employees overpaid? Understanding the public/private wage gap and its effect on the government deficit

Ghana is again experiencing large and chronic fiscal deficits that many analysts attribute to a sharp increase in its the public-sector wage bill. This study uses macroeconomic and household survey data to examine public employment and public wages both historically and in comparison with private-se...

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Autores principales: Younger, Stephen D., Osei-Assibey, Eric
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2017
Materias:
Acceso en línea:https://hdl.handle.net/10568/146353
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author Younger, Stephen D.
Osei-Assibey, Eric
author_browse Osei-Assibey, Eric
Younger, Stephen D.
author_facet Younger, Stephen D.
Osei-Assibey, Eric
author_sort Younger, Stephen D.
collection Repository of Agricultural Research Outputs (CGSpace)
description Ghana is again experiencing large and chronic fiscal deficits that many analysts attribute to a sharp increase in its the public-sector wage bill. This study uses macroeconomic and household survey data to examine public employment and public wages both historically and in comparison with private-sector wages. Although we do find a public-sector wage premium in the most recent data (for 2012/2013), it is not as large as one would expect from the macro data, totaling only 15 to 28 percent of the public-sector wage bill, or 2 to 3 percent of gross domestic product. That is far from enough to eliminate the government deficit. To make further reductions in the wage bill, policymakers must either make the normative case that public-sector workers should be paid less than private-sector workers with similar qualifications, something that will be difficult politically, or they must adjust the required skill levels of public-sector employees downward, something that may not make administrative sense. There is some low-hanging fruit in the public-sector wage bill, but not enough to resolve Ghana’s fiscal crisis.
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spelling CGSpace1463532025-11-06T06:42:50Z Are Ghana’s Public-Sector employees overpaid? Understanding the public/private wage gap and its effect on the government deficit Younger, Stephen D. Osei-Assibey, Eric labour market public sector public debt fiscal policies remuneration Ghana is again experiencing large and chronic fiscal deficits that many analysts attribute to a sharp increase in its the public-sector wage bill. This study uses macroeconomic and household survey data to examine public employment and public wages both historically and in comparison with private-sector wages. Although we do find a public-sector wage premium in the most recent data (for 2012/2013), it is not as large as one would expect from the macro data, totaling only 15 to 28 percent of the public-sector wage bill, or 2 to 3 percent of gross domestic product. That is far from enough to eliminate the government deficit. To make further reductions in the wage bill, policymakers must either make the normative case that public-sector workers should be paid less than private-sector workers with similar qualifications, something that will be difficult politically, or they must adjust the required skill levels of public-sector employees downward, something that may not make administrative sense. There is some low-hanging fruit in the public-sector wage bill, but not enough to resolve Ghana’s fiscal crisis. 2017 2024-06-21T09:06:44Z 2024-06-21T09:06:44Z Working Paper https://hdl.handle.net/10568/146353 en application/pdf International Food Policy Research Institute Younger, Stephen D.; and Osei-Assibey, Eric. 2017. Are Ghana’s Public-Sector employees overpaid? Understanding the public/private wage gap and its effect on the government deficit. IFPRI Discussion Paper 1691. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/146353
spellingShingle labour market
public sector
public debt
fiscal policies
remuneration
Younger, Stephen D.
Osei-Assibey, Eric
Are Ghana’s Public-Sector employees overpaid? Understanding the public/private wage gap and its effect on the government deficit
title Are Ghana’s Public-Sector employees overpaid? Understanding the public/private wage gap and its effect on the government deficit
title_full Are Ghana’s Public-Sector employees overpaid? Understanding the public/private wage gap and its effect on the government deficit
title_fullStr Are Ghana’s Public-Sector employees overpaid? Understanding the public/private wage gap and its effect on the government deficit
title_full_unstemmed Are Ghana’s Public-Sector employees overpaid? Understanding the public/private wage gap and its effect on the government deficit
title_short Are Ghana’s Public-Sector employees overpaid? Understanding the public/private wage gap and its effect on the government deficit
title_sort are ghana s public sector employees overpaid understanding the public private wage gap and its effect on the government deficit
topic labour market
public sector
public debt
fiscal policies
remuneration
url https://hdl.handle.net/10568/146353
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