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Government workers earn 10 per cent more than private sector

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Toronto, Public sector workers in Canada enjoy about a 10 per cent wage premium on average when compared to workers doing the same job in the private sector, a Fraser Institute study has found.
The study also found that even after factoring in higher rates of unionization in the public sector, the wage premium enjoyed by public sector workers over their private sector counterparts fell to 6.7 per cent.
Using available data, the Institute also found public sector workers retire about two and a half years earlier than private sector workers on average, and were absent an average of 12 days per year in 2013, versus 8 days per year by private sector workers.
The institute suggests municipal, provincial and the federal government change the way they award wage and benefit increases to their employees to lower costs to taxpayers. They recommend using independent boards to set compensation levels, or offering unions lump sums of money and asking them to decide how the money should be split between wages, benefits and pensions.
An average of 20.4 per cent of workers in each Canadian province worked in the public sector in 2013.

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